U.S. stock indexes are drifting on Wednesday, ahead of the Federal Reserve’s upcoming decision on interest rates and after two days of disruption driven by doubts about the artificial-intelligence boom.

Warren Buffett's historic $127 billion warning to Wall Street happens to align with another stock market alarm. Specifically, the S&P 500 currently trades at a historically expensive valuation. The index achieved a cyclically adjusted price-to-earnings ratio (CAPE) of 37.9 in December 2024, which is a substantial premium to 20-year average of 27.

U.S. stock indexes are rising following a mostly encouraging batch of profit reports from big companies. The S&P 500 rose 0.7% in afternoon trading Tuesday, as many markets around the world took only tentative steps following Donald Trump’s return to the White House.