12:40 PM EDT, 09/17/2024 (MT Newswires) -- US equity indexes ground higher midday Tuesday alongside gains in most government bond yields as retail sales unexpectedly increased a day before the Federal Reserve's policy move.

The S&P 500 index rose less than 0.1% to 5,634.2, with the Nasdaq Composite up 0.1% to 17,615.4 and the Dow Jones Industrial Average less than 0.1% higher at 41,634.6. Energy and consumer discretionary led the gainers while healthcare and real estate were among the decliners.

Most Treasury yields rose, with the 10-year yield up 2.1 basis points to 3.64%, and the two-year rate was 4.8 basis points higher at 3.6%.

The probability of a 50 basis-point cut on Wednesday stood at 61% on Tuesday afternoon versus 34% a week ago, as per the FedWatch Tool. The remaining 39% likelihood was a 25 basis-point drop versus 66% a week earlier. The Federal Open Market Committee's policy announcement at 2 pm ET on Wednesday will be its last before the Nov. 5 presidential elections.

In contrast, a CNBC survey showed 84% of the 27 respondents, including economists, fund managers, and strategists, see the Fed cutting by a quarter percentage point, with 16% seeing a half-point decrease, a news report from the US media outlet said. The main difference could be that survey respondents appear less worried about the economy overall than futures markets and more convinced the Fed has time to enact gradual rate cuts should the economy need it, the news report added.

In economic news, US retail sales gained 0.1% in August, compared with the 0.2% decline anticipated in a survey compiled by Bloomberg and the previous month's 1.1% increase. Excluding a 0.1% retreat in motor vehicle sales, retail sales were still up 0.1% versus an expected 0.2% gain and a 0.4% advance in July. Excluding motor vehicles and a 1.2% drop in gasoline station sales, retail sales were up 0.2% in August after a 0.4% gain in July.

In company news, BofA Securities upgraded Hewlett Packard Enterprise ( HPE ) to buy from neutral while raising its price target to $24 from $21. Shares were up 5.6% intraday, the top gainer on the S&P 500.

West Texas Intermediate crude oil futures jumped 2% to $71.52 a barrel.