US stocks tick up ahead of Fed decision

New York - US stocks rose modestly on Wednesday ahead of the Federal Reserve's monetary policy announcement, with traders awaiting signals about when the central bank will lift its key near-zero interest rate.

After about five minutes of trade, the Dow Jones Industrial Average was up 20.68 points at 17 152.65.

The broad-based S&P 500 gained 0.13% at 2 001.53, while the tech-rich Nasdaq Composite Index rose 0.14% to 4 558.91.

The gains extended Tuesday's late rally driven in part by reports of a Chinese government stimulus plan. Those reports continued to lend support, Charles Schwab said in a market note.

Meanwhile US consumer prices fell in August for the first time in more than a year, fresh evidence of persistent tame inflation as the Fed meets for a second day to determine monetary policy.

The central bank, in a statement around 20:00, is expected maintain its stance that it will not raise its key ultra-low interest rate before mid-2015.