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US stocks were mostly higher on Wednesday as investors looked ahead to the Fed's next interest rate move.
The major indexes ticked higher as the market opened and bond yields eased, with the 10-year US Treasury slipping three basis points to 4.17%.
Central bankers are will announce their final policy decision of the year today at 2 p.m., with Fed Chairman Jerome Powell set to speak shortly after. Markets are pricing in a near-100% chance Fed officials will choose to keep rates unchanged in December, and are hoping to hear some talk of potential easing of monetary policy to start early next year.
The Fed, though, has said rates can stay higher for longer as inflation remains above its 2% target and the economy continues to show resilience. Prices cooled slightly to 3.1% in November, still well-above the Fed's long-run inflation target of 2%.
"We believe the markets are priced for near-term disappointment," Comerica Wealth Management CIO John Lynch said in a statement on Wednesday. "Recent data on inflation, employment, and Jerome Powell's persistent messaging are inconsistent with the market's optimism."
The Fed will likely project rates remaining around 5.1% by the end of 2024, the wealth manager said. More than half of investors are pricing in at least 100 basis-points of rate cuts by the end of 2024, according to the CME FedWatch tool.
Here's where US indexes stood shorty after at the 9:30 a.m. opening bell on Wednesday:
Here's what else is going on today:
In commodities, bonds, and crypto: