S&P 500 ticks higher ahead of Fed decision; chip stocks gain after SK Hynix profit boom

The S&P 500 inched higher on Wednesday as investors awaited a rate policy decision from the Federal Reserve and earnings reports from mega-cap technology companies.

The broad market index gained 0.2%, while the Nasdaq Composite traded around the flatline. The Dow Jones Industrial Average added 133 points, or 0.3%.

Focus will turn to domestic monetary policy as the Fed wraps up its two-day policy meeting. The central bank is widely predicted to keep interest rates steady at a target rate range of 3.75% to 4%. Policymakers raised rates by a quarter percentage point at their September meeting.

According to CME's FedWatch tool, there's a roughly 92% chance that the Fed maintains the current interest rate, but some expect that Chairman Kevin Warsh will signal that more hikes are coming in future policy meetings. The decision on interest rates will be announced at 2 p.m. ET.

"We would characterize Wednesday's meeting as more of an update rather than an action, and the update is likely to include a continuation of the hawkish language that Chair Warsh has used in the past," said Glen Smith, chief investment officer at GDS Wealth Management.