5 things to know before the stock market opens Wednesday

Here are the most important news items that investors need to start their trading day:

Decision day is here. Will the Federal Reserve raise its benchmark rate by another quarter point, as has long been expected, or will it hold off for now as the world catches its breath after two tumultuous weeks in the global banking sector? The smart money appears to be on a rate hike, especially since markets have shown signs of calming down after several extraordinary steps by bankers and regulators alike to shore up confidence in the financial system. Besides, the really interesting stuff, as usual, will come from the Fed’s statement laying out next steps – and what Chairman Jerome Powell will say in his press conference Wednesday afternoon. As CNBC’s Patti Domm writes, Powell has to show he has a plan to keep up the fight against inflation while calming lingering anxieties about banks.

It’s all about the Fed on Wednesday, for sure, but it’s also worth reflecting on what’s been two strong, relatively calm days for markets this week. After a strong Monday, in the immediate aftermath of the UBS-Credit Suisse deal, U.S. equities posted robust gains Tuesday. The Dow rose about 1% while the S&P 500 and the Nasdaq each increased by more than 1%. It could be stemming from optimism that the Fed may lay off monetary tightening sooner than later due to the recent banking crisis, so there’s a lot riding on what Powell says Wednesday. “Fed tightening cycles typically end with a crisis, and those crises tend to end with policy responses,” said Brian Levitt, global market strategist for Invesco. Follow live markets updates.