S&P 500 and Nasdaq open higher as oil pulls back ahead of Fed rate decision

US equities opened higher as oil prices eased, clearing some pressure off investors who are counting down to the Federal Reserve's latest rate decision, according to Token Times.

The S&P 500 and Nasdaq both moved up at the open, with the softer oil price offering relief to a market that has spent recent sessions weighing energy costs against the path of US monetary policy.

The Federal Reserve's decision is the session's main event. Traders will be watching for the rate call and any signal on the direction of policy, which sets the tone for borrowing costs, the dollar and risk assets well beyond the US market.

Oil's pullback matters because energy costs feed directly into inflation, the variable that has driven the Fed's decisions. A sustained retreat would ease the pressure on policymakers; a renewed climb would complicate the outlook.

For emerging markets, the combination of US rates and oil prices shapes currency stability, import bills and the cost of external financing. A calmer oil price and a steady Fed would be the outcome those markets want.