US stocks edge higher as FOMC decision looms

Major US equity indices witnessed subdued opening on Wednesday as investors digested the latest disappointing US macro data and brace for imminent FOMC decision, later during the day.

Despite of the latest US data disappointment, the Federal Reserve is widely expected to raise interest rates for second time this year and push the benchmark rates above 1% for the first time since 2008. Investors will also be looking for any details over the central bank's plans to trim its $4.5 trillion balance sheet and the timing of subsequent hikes. The announcement would be followed by the Fed Chair Janet Yellen's press conference.

On economic data front, the latest inflation figures suggested easing inflationary pressure, with yearly rate receding from five-year high level of 2.7% in January to 1.9% in May. Meanwhile, the US monthly retail sales posted its biggest drop since January 2016, at -0.3% m-o-m during May and pushed yields down dramatically, suggesting that the Fed might need to opt for a more gradual pace of monetary tightening.

At the time of writing, the Dow Jones Industrial Average was up by 17-points to 21,345, while the broader S&P 500 Index was nearly unchanged at 2,441. Meanwhile, tech-heavy Nasdaq Composite gained nearly 10-points to 6,230.

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