US stocks held close to record levels on Wednesday as investors awaited the Federal Reserve’s interest rate decision, with gains in tech and industrial heavyweights helping sustain Wall Street’s momentum.The S&P 500 was up 0.3%, while the Dow Jones Industrial Average rose 193 points (0.4%) and the Nasdaq Composite gained 0.7% as of 9:35 am Eastern time. All three indices were trading near their latest all-time highs, buoyed by expectations that the Fed would announce its second rate cut of the year to support a cooling job market.Bond yields were largely steady, with the 10-year Treasury yield slipping to 3.98% from 3.99% late Tuesday, reflecting investor caution ahead of the Fed announcement. Market attention is focused on whether policymakers will hint at another potential rate cut in December.The rally in equities has been underpinned by hopes of lower borrowing costs, but the Fed has warned that it could pause its easing cycle if inflation shows signs of re-acceleration. The situation has been further complicated by the US government shutdown, which has delayed key economic data releases used to guide monetary policy decisions.Earnings reports from major companies helped lift sentiment. Caterpillar surged 9.3% after posting better-than-expected quarterly profit and revenue, driven by strong demand for construction and mining equipment. CEO Joe Creed said the company saw “resilient demand” despite a “dynamic environment.”CVS Health climbed 3.1% after surpassing profit estimates, even as it reported losses tied to scaling back new primary care clinic openings. CEO David Joyner said the company had “stabilized operations.”Teradyne soared 19% following stronger-than-expected results, with CEO Greg Smith citing robust demand from artificial intelligence-related testing, saying “AI-related test demand remains robust.”Nvidia rose 4.9%, becoming the first company to reach a $5 trillion market capitalization, just months after breaching the $4 trillion mark. The AI chipmaker’s surge provided the biggest boost to the S&P 500.However, Mondelez International slipped 3.3% despite solid earnings, as the Oreo-maker warned of continued headwinds from record cocoa prices, even though it expects some moderation in the coming months.Asian markets closed higher, with Japan’s Nikkei 225 rising 2.2% to a fresh record and South Korea’s Kospi up 1.8% after President Donald Trump met with Seoul’s leader during his visit to Japan. Shanghai’s Composite Index gained 0.7% ahead of Trump’s scheduled meeting with Chinese President Xi Jinping amid ongoing trade tensions.European stocks were mixed as investors tracked global central bank actions and corporate results.
