Stocks before Fed decision

US stock indices moved higher in early trading on Wednesday as market participants await the results of the Federal Reserve's December meeting.

The Dow Jones Industrial Average index was up 199.86 points (0.59%) at 34,308.50 by 12:15 a.m. ET.

The Standard and Poor's 500 rose 20.31 points (0.51%) to 4,039.96 points.

The Nasdaq Composite added 46.28 points (0.40%) to 11,301.50.

The outcome of the meeting will be known at 2 pm ET. Economists and market participants are almost certain that the Federal Reserve will raise its key interest rate by 50 basis points, to 4.25-4.5% annually.

Confidence in that decision was bolstered by the November inflation report released the day before in the US, which showed consumer prices rose 7.1% year-on-year last month after rising 7.7% in October. Inflation slowed to its lowest since December 2021 and was therefore below the 7.3% expected by analysts.

Meanwhile, inflation is still three and a half times the Fed's target, and central bank governor Jerome Powell in his traditional post-meeting speech is sure to signal that the Fed is not going to stop and will continue to raise rates and then keep them high for a long time, experts believe.

Microsoft Corp (NASDAQ: MSFT) and Procter and Gamble (NYSE: PG) +1.2%, while Goldman Sachs Group (NYSE: GS) shares show the sharpest decline, falling 0.9%.

Delta Air Lines (NYSE: DAL) shares are up 2.4% in early trading after one of the largest U.S. airlines improved its adjusted profit forecast for the fourth quarter of this year on the back of sustained strong demand for air travel.

Moderna (NASDAQ: MRNA)'s stock price is up 1.5% thanks to positive results from clinical trials of the company's cancer vaccine developed in combination with Merck and Co (NYSE: MRK).

US electric car maker Tesla (NASDAQ: TSLA) shares continue to fall in value, down 1.4% after falling 4.1% the day before. Tesla's share price has fallen nearly 40% since late September.