S&P 500 and Nasdaq Slide as Investors Await Fed's Policy Decision

Modest pullbacks on Wednesday saw U.S. stock markets as investors chase the Federal Reserve's decision to raise interest rates next week. The S&P 500 fell 0.4 percent, and the tech-focused Nasdaq dropped 0.7 percent. Contributing to an already volatile week for the semiconductor giant, Nvidia ( NVDA , Financial ) logged a 5% decline as it rallied recently. The Dow Jones Industrial Average gained 20 points, or a little less than 0.1%.

At 2 p.m. ET, the Federal Reserve will announce its policy goals, and nearly 100 percent of market participants anticipate that the central bank's interest rate target of 4.25 percent to 4.5 percent will remain steady. Fed Chair Jerome Powell's press conference at 2 p.m. ET. The most important interest will also be at 30 p.m. ET, in the wake of the icy currents between Powell and former President Donald Trump. Though it carries political overtones, analysts remain doubtful Powell's remarks will do much to move market expectations.

Unlike traditional companies, investors are more strategic in selecting earnings reports from tech giants like Facebook ( META , Financial ) and Tesla ( TSLA , Financial ), said Mike Dickson, head of research and quantitative strategies at Horizon Investments LLP. The fact that profits from these earnings run so deep in every market could make them more sensitive to corporate results than the Fed's most recent position.

This article first appeared on GuruFocus .