Fed Decision and Middle East Tensions Keep Wall Street on Edge

Wall Street's primary indicators were braced for a subdued opening on Wednesday as the market awaited the Federal Reserve's monetary policy announcement amidst escalating tensions in the Israel-Iran conflict.

Investors are keenly observing Fed Chair Jerome Powell's statements to decipher his strategy against the persistent threat of inflation. Despite expectations of unchanged rates, data suggests a possibility of rate reductions by 2025.

Meanwhile, geopolitical tensions also influenced market dynamics, driving apprehensions over potential U.S. military involvements. Oil prices steadied, and sector-specific stocks like stablecoin issuer Circle Internet and drugmaker Scholar Rock showed premarket movements.

(With inputs from agencies.)