U.S. equities moved modestly higher in afternoon trading as investors stayed focused on the Federal Reserve’s upcoming policy decision. Trading was cautious, with many market participants reluctant to take large positions before the central bank signals its next move on interest rates.

The advance was limited, reflecting a wait-and-see mood across Wall Street. Traders appeared to be balancing expectations for the Fed’s outlook against broader concerns about growth, inflation, and the pace of monetary easing.

Major indexes were still near recent levels, suggesting that investors are more interested in the tone of the Fed statement and any hints from policymakers than in making aggressive bets ahead of the announcement.

Markets often turn choppy before major rate decisions, and this session was no exception. The next phase of trading is likely to depend on how clearly the Federal Reserve communicates its plans for borrowing costs in the months ahead.