Markets Await Fed's Key Rate Decision

U.S. stock markets experienced cautious movement as investors braced for the Federal Reserve's pivotal rate announcement, expected to cut rates by 25 basis points. Market attention also centered on projections for future economic conditions and hints from Chair Jerome Powell about upcoming policy directions.

Wall Street showed cautious trading as investors anxiously anticipated the Federal Reserve's rate cut decision on Wednesday, expected to lower by 25 basis points. The Fed's economic projections will be closely watched for insights on future rates and 2025 policy expectations.

Stocks faced a mixed performance with tech-heavy Nasdaq and S&P 500 slightly dipping, while Dow inched up with gains from healthcare stocks. Tesla led drops in the rate-sensitive sector, despite recent rises, while Nvidia saw a rebound.

Merck's strategic $2 billion deal on an obesity drug and Birkenstock's strong Q4 results supported investor sentiment, amidst a year-end rally fueled by anticipation of a favorable rate environment. Crypto stocks fell following Bitcoin's drop.

(With inputs from agencies.)