The Dow Jones Industrial Average and Nasdaq Composite opened lower Wednesday as investors awaited the conclusion of a Federal Reserve policy meeting and continued to sift through quarterly results from technology heavyweights.

Also, President Joe Biden is expected Wednesday night to unveil a $1.8 trillion package of new spending and tax cuts aimed at children and families.

What are major indexes doing?
  • The Dow Jones Industrial Average
    YM00,
    -0.32%

    fell 104 points, or 0.3%, to 33,881.

  • The S&P 500
    ES00,
    +0.12%

    was up 4 points to near 4,191.

  • The Nasdaq Composite
    NQ00,
    -0.21%

    fell 36 points, or 0.3%, to 14,054.

On Tuesday, major benchmarks were largely in a holding pattern, with the Dow
DJIA,
-0.28%

posting a gain of 3.36 points, or less than 0.1%, at 33,984.93, while the S&P 500
SPX,
+0.15%

shed less than 0.1% and the Nasdaq Composite
COMP,
-0.12%

gave up 0.3%.

What’s driving the market?

Stocks have struggled for direction this week, with benchmark indexes trading near all-time highs, despite strong earnings and economic data as investors assess how much good news is already factored into the market.

The Fed is expected to leave policy unchanged as it concludes a two-day policy meeting. While the central bank and Fed Chairman Jerome Powell are expected to acknowledge a strengthening economy, policy makers are also expected to maintain that they remain committed to keeping policy settings loose.

Market participants, however, “are ready to pounce on even the slightest hint of policy normalization amid an economic recovery that is gaining more and more traction,” said Han Tan, market analyst at FXTM, in a note. “As long as the Fed leaves policy settings the way they are at present, U.S. stocks are still more likely to climb to fresh peaks.”

Read: Debt markets getting the memo on the path of likely Fed rate hikes

The Fed will release its policy statement at 2 p.m. Eastern, with Powell’s news conference set to begin at 2:30 p.m.

Need to Know: The Fed is standing aside as house prices rip higher — but here’s what could get in the way

Largely positive results rolled in from a number of major tech companies and other corporate heavyweights late Tuesday and Wednesday, with more to come as one of the busiest weeks of earnings season continues.

Biden, in an address to a joint session of Congress, is set to detail a plan that would see new spending on education, child care, and paid leave while extending some tax breaks.

Read: Biden to lay out $1.8 trillion family spending plan that calls for capital-gains tax hike

To partly pay for the plan, Biden will propose raising the top tax rate on the wealthiest Americans from 37% to 39.6% and would raise the tax rate on capital gains for people earning more than $1 million a year from 20% to 39.6%. The tax changes are forecast to raise $1.5 trillion over 10 years.

Data on March trade in goods is due at 8:30 a.m. Eastern.

Which companies are in focus?
What are other markets doing?
  • The yield on the 10-year Treasury note
    BX:TMUBMUSD10Y
    rose less than 1 basis point to 1.626%. Yields and bond prices move in opposite directions.

  • The ICE U.S. Dollar Index
    DXY,
    -0.04%
    ,
    a measure of the currency against a basket of six major rivals, was up 0.1%.

  • Oil futures moved higher, with the U.S. benchmark
    CL00,
    +1.68%

    up 1.1% Gold futures
    GC00,
    -0.39%

    moved lower, falling 0.5% to $1,770.10 an ounce.

  • In global equity trading, the Stoxx Europe 600 index
    SXXP,
    +0.11%

    was little changed, while London’s FTSE 100
    UKX,
    +0.42%

    gained 0.4%. The Shanghai Composite
    SHCOMP,
    +0.42%

    and Hong Kong’s Hang Seng Index
    HSI,
    +0.45%

    each rose 0.4%, while Japan’s Nikkei 225
    NIK,
    +0.21%

    gained 0.2%.



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