US Equity Indexes Mixed as Fed Set to Tighten Monetary Policy

12:24 PM EDT, 09/16/2026 (MT Newswires) -- (Updates with index/price moves and geopolitical news from the first paragraph.) US equity indexes traded mixed ahead of a likely interest-rate increase from the Federal Reserve later on Wednesday. The Nasdaq Composite rose 0.8% to 26,195.6, the S&P 500 climbed 0.4% to 7,619.2, and the Dow Jones Industrial Average was little changed at 52,115.1 after midday. All sectors except energy and financials advanced. Technology and industrials led gainers. Ahead of the Fed's policy announcements on Wednesday, including an update of the Summary of Economic Projections, interest rate traders are now pricing in a 93% probability that the central bank will raise its target rate by 25 basis points, up from 33% a month ago, according to the CME FedWatch tool. The remaining likelihood is that the central bank will extend its pause. US Treasury yields, however, retreated ahead of the policy decision. The 10-year yield dropped 4.1 basis points to 4.96%, declining from its highest since 2007. The two-year yield slumped 4.4 basis points to 4.62%, after touching multi-year highs this week. Saudi Arabia said a drone launched by the Houthis towards Mecca was intercepted, while the Iran-aligned militia group denied targeting the holy site, calling the accusation a "nauseating lie," Al Jazeera, a Middle Eastern broadcaster, reported Wednesday. The Houthis said they targeted oil facilities in Saudi Arabia's Yanbu port and Khamis Mushait airbase, the news report said, adding that Riyadh has not commented on the claims. The front-month US West Texas Intermediate crude oil contract sank 3.9% to $101.68 per barrel, and the global benchmark North Sea Brent slid 3.3% to $105.17 per barrel. Gold futures jumped 1.4% to $4,393.2, and silver futures rose 2% to $65.11.