Traders are treading cautiously in Wednesday's session, seeking more clarity on the Federal Reserve's stance with inflation reports exceeding expectations.

The forthcoming Federal Open Market Committee statement is anticipated to maintain interest rates where they are and possibly unveil a reduction in the Fed's balance sheet runoff from $60 billion to $30 billion monthly. Fed ChairJerome Powell's press conference is at 2:30 p.m. ET.

The S&P 500 inched 0.2% lower, while the tech-heavy Nasdaq 100 underperformed, down 0.6%. Blue chips managed to avoid losses and showcased a 0.3% rise.

Aside from Fed policy, earnings remain a key driver of market...