US Equities Rise 0.3-0.7 Percent on September 16 Ahead of Fed Rate Decision at 2 PM ET, With 92 Percent Odds Priced for First Hike Since 2023

US equity markets rose on Wednesday September 16 ahead of the Federal Reserve's 2 PM ET interest rate decision, with the S&P 500 gaining 0.3 percent to around 7,606, the Nasdaq Composite climbing 0.7 percent to approximately 26,167, and the Dow Jones Industrial Average hovering near flat at 52,050, according to CNBC, Yahoo Finance, and Trading Economics. Chipmakers led gains after Reuters reported Intel and SK Hynix are in talks to manufacture memory chips in the US for the first time, with Intel shares rising 5 percent and SK Hynix gaining 2 percent in pre-market trading. Futures markets priced a 92.5 percent probability of a quarter-point rate hike to 3.75-4.00 percent, marking the Fed's first increase since 2023, according to CME FedWatch. The move higher comes despite Tuesday's selloff, when the S&P 500 fell 0.45 percent and the Nasdaq dropped 0.74 percent as the 10-year Treasury yield hit 5.04 percent, its highest level since July 2007. On Wednesday morning, the 10-year yield eased to 4.97 percent, down more than 2 basis points. Markets will closely watch Chair Kevin Warsh's post-decision press conference at 2:30 PM ET for signals on further tightening, with the updated Summary of Economic Projections showing whether officials expect additional hikes in October or December. Persistent inflation at 3.4 percent headline and 2.4 percent core, combined with oil prices above $100 per barrel, have kept pressure on the Fed to act despite a resilient labor market.