Wall Street Edges Up as Investors Await Fed's Move Amid Middle East Tensions

Wall Street's key indexes saw minor gains on Wednesday, as the financial world turned its attention to the Federal Reserve's forthcoming monetary policy decision. The market's cautious optimism comes amidst an escalating conflict between Israel and Iran, which now enters its sixth day.

The statements of Fed Chair Jerome Powell are eagerly awaited, as investors seek insight into his strategy for countering rising prices, a pressing concern for the central bank. It is anticipated that the Fed will maintain current interest rates, aligning with market predictions. Recent movements in money markets indicate a projected 46 basis points reduction by 2025's end, contingent on the CME Group's FedWatch tool.

The potential for increased U.S. involvement in Middle Eastern conflict has heightened investor anxiety. In domestic trading, positive performances came from the energy and consumer sectors, while healthcare saw reductions. Tesla's shares climbed, and Circle Internet rose due to stablecoin regulatory developments. Meanwhile, initial jobless claims data suggested continued labor market caution.

(With inputs from agencies.)