On Wednesday, the Dow Jones Industrial Average experienced a decline as investors shifted their attention to the upcoming policy decision by the Federal Reserve, along with the subsequent press conference scheduled for the afternoon.

The 30-stock average saw a slight decrease of 110 points, equivalent to 0.3%. Conversely, the S&P 500 showed a gain of 0.3%, and the Nasdaq Composite increased by 0.4%. The largest setback for the Dow was caused by UnitedHealth, which experienced a loss of 7.4%.

Aside from the Federal Reserve's policy announcement, investors are also preparing for Chair Jerome Powell's remarks to the media, which may provide valuable insights into the state of the economy and the central bank's future course of action.

Encouraging inflation data was released on Wednesday, with May's producer price index, a key inflation indicator, declining by 0.3%, surpassing the expected decrease of 0.1% as predicted by economists surveyed by Dow Jones. Investor optimism was further bolstered by Tuesday's consumer price index, which revealed the lowest annual increase in over two years, instilling hope that the Federal Reserve will refrain from raising interest rates.

Joseph Cusick, the senior vice president at Calamos Investments, commented on the current situation, stating, "With volatility at a low level and indications that the Federal Reserve is inclined to hold off, it will be particularly intriguing to observe the market's reaction after today's announcement. However, if emotions and apprehension continue to influence the market, it is likely that the prevailing trade, also known as the 'pain trade,' will be towards higher levels."

According to CME Group's FedWatch tool, the market currently predicts a 97% probability that the central bank will maintain interest rates at the existing target range of 5% to 5.25%. This would provide relief from a series of ten consecutive rate hikes.

This optimism contributed to the market's upward movement on Tuesday, with the Dow Jones Industrial Average gaining nearly 146 points, equivalent to 0.4%. Similarly, the S&P 500 and Nasdaq Composite registered gains of 0.7% and 0.8%, respectively. During the session, both the S&P 500 and Nasdaq Composite reached their highest levels since last April.