Wall Street closed higher as the market awaits the Fed meeting

Indices had fallen in the past three sessions after a summer rally was halted by growing concerns about an aggressive stance from the Fed.the energy crisis in Europe and signs of economic slowdown in China.

The S&P 500 has rallied 13% from its mid-June lows. The benchmark will end the year slightly above its current level, according to a Reuters poll.

Boosting the Nasdaq, with its strong technological weight, Tesla Inc. won before a stock split, while Intuit Inc. rebounded after the accounting software maker forecast encouraging tax revenue for 2023.

Salesforce Inc. rose ahead of the trading software vendor’s quarterly report after the market closed.

Six of the 11 major S&P 500 sectors were higher by mid-morning in New York., with energy leading the gains. Meanwhile, the banks fell 0.4%, on track to extend losses for the sixth straight session.

Data on Tuesday showed private-sector business activity in the United States contracted for the second consecutive month in August to its lowest level in 27 months, with particular weakness in the services sector as demand weakened.

“Traders are reluctant to increase their exposure, they fear being run over by a more aggressive Fed,” said Marios Hadjikyriacos, senior investment analyst at XM.

Spotlight turns to Jackson Hole symposium beginning Thursday and comments the next day from the Fed chair, Jerome Powellfor clues as to whether the central bank can achieve a “soft landing”.

Traders are torn between expecting an increase in 50 basis points and one of 75 basis points by the central bank at its meeting in September.

While, Data on Tuesday showed the global economy is increasingly at risk of slipping into a recession.since the consumers control spendingfacing unrelenting inflation, as central banks tighten monetary policy aggressively.