U.S. stocks step cautiously ahead of the Fed

• Nasdaq, S&P 500 rise modestly, Dow ~flat
• Utilities lead S&P sector gainers; Energy weakest group
• Euro STOXX 600 index up ~0.2%
• Dollar, crude, bitcoin gain; gold dips
• US 10-Year Treasury yield rises to ~4.37%

Wall Street's main indexes are subdued early on Wednesday, as investors assess better-than-expected GDP data, and await the Federal Reserve's policy decision and key tech earnings.

Gross domestic product increased at a 3% annualized rate in the second quarter, helped by subsiding imports, which accounted for the bulk of the improvement, and a moderate increase in consumer spending.

On the trade front, caution emerged after President Donald Trump announced a 25% tariff on goods imported from India starting from August 1.

Meanwhile, investors will also closely monitor the Fed's interest rate decision later in the day. While a "hold" verdict has largely been priced in, attention will shift to Chair Jerome Powell's comments for any clues about the future policy path.

According to interest rate probabilities, the market is pricing in 43.9 basis points of cuts through year end.

A majority of S&P 500 index .SPX sectors are higher, but overall changes are modest. Utilities .SPLRCU, up around 0.9%, are posting the biggest gain, while Energy .SPNY, down around 0.9%, is the weakest group.

Under the surface, chip stocks .SOX are higher, while gold stocks .HUI and transports .DJT are on the weak side.

June pending home sales data is due at 10:00 a.m. EDT. The Reuters Poll calls for a MM change of 0.3% vs a 1.8% prior read.

Microsoft MSFT.O and Meta Platforms META.O are due to release quarterly results after the closing bell.

Here is a snapshot of where markets stood around 09:43 a.m. EDT: