Fed-funds futures traders have been pricing in two quarter-point rate cuts from the Federal Reserve in 2025, as well as one to four similar moves next year, despite rising concerns about inflation.

The Dow Jones Industrial Average hovered around the flatline. The S&P 500 gained 0.1% along with the Nasdaq Composite.

Investors continue to absorb heightened Middle East tensions and the Federal Reserve will give its monetary policy update at 2 p.m. Eastern time.