What is causing the movements in the markets on Wednesday as stocks slightly increase in anticipation of the Federal Reserve’s meeting, while bonds experience a significant surge due to a more lenient refunding plan?

Stocks saw a small increase ahead of the Federal Open Market Committee (FOMC) meeting, where it is expected that interest rates will remain unchanged. Investors are anticipating a dovish press conference from Powell and have been buying Treasury bonds in preparation for no further rate hikes. The 2-year Treasury yield decreased by 7 basis points and the 30-year yield dropped by 11 basis points. The iShares 20+ Year Treasury Bond ETF (NASDAQ:TLT) experienced a rally. The U.S. Treasury plans to offer $112 billion in longer-term securities during its upcoming refunding auctions, which is a slower pace compared to previous projections. Economic data for the day was weaker than expected, with the ISM Manufacturing Purchasing Managers’ Index falling below anticipation. The ADP reported a lower monthly national employment change than expected, though job openings increased in September. The S&P 500 and Nasdaq 100 both rose, while the Dow Jones Industrial Average remained steady and small caps declined. The SPDR S&P 500 ETF Trust (NYSE: SPY), SPDR Dow Jones Industrial Average ETF (NYSE: DIA), and Invesco QQQ Trust (NASDAQ: QQQ) also saw changes in value. Certain companies showed significant movement following their quarterly results, including Advanced Micro Devices Inc. (NASDAQ: AMD), WeWork Inc. (NYSE: WE), The Kraft Heinz Co. (NASDAQ: KHC), and Paycom Software, Inc. (NASDAQ: PAYC). Crude oil and the U.S. dollar both rose, while European equity indices saw marginal gains. Gold and silver experienced fluctuations, and Bitcoin saw a minor decrease in value.