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Fed's rate decision expected at 2:00 p.m. ET

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Birkenstock ( BIRK ) up after beating estimates for Q4 results

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Indexes up: Dow 0.37%, S&P 500 0.2%, Nasdaq 0.2%

(Updates with mid-morning trade)

By Lisa Pauline Mattackal and Purvi Agarwal

Dec 18 (Reuters) -

Wall Street's main indexes rose on Wednesday, regaining some

ground lost in the previous session, as investors anticipated an

interest rate cut from the Federal Reserve and awaited clues on

what policymakers could do in 2025.

The Fed is widely expected to reduce interest rates by 25

basis points at its last meeting of the year. The announcement

is expected at 2 p.m. ET on Wednesday.

With a rate cut expected by most investors, more focus

is on the Fed's summary of economic projections (SEP), which

includes policymakers' forecasts for the economy and the "dot

plot" of their expectations for interest rates over the longer

term.

Comments from Chair Jerome Powell will also be watched

for clues on how the central bank will determine policy next

year, as recent economic data has shown both strong growth and

persistent inflation that could keep the Fed from cutting rates

as much as previously forecast.

"The prevailing view is that the Fed will accompany the

rate cut with hawkish comments, indicating that it's time to

take a pause in loosening monetary policy," said David Morrison,

senior market analyst at Trade Nation.

"This seems wise, given the incoming Trump

administration, the recent uptick in inflation, decent U.S.

economic growth and the strength of the U.S. stock market."

At 12:00 p.m. ET, the Dow Jones Industrial Average

rose 160.68 points, or 0.37%, to 43,610.58, the S&P 500

gained 12.56 points, or 0.21%, to 6,063.10 and the Nasdaq

Composite gained 37.96 points, or 0.19%, to 20,147.02.

Higher interest rates are typically negative for the

equity market, making less risky investments more attractive and

pressuring companies' stock prices as their growth slows.

Tesla edged up 1%, reversing early losses,

after rising over 14% in the last three sessions, while AI giant

Nvidia ( NVDA ) jumped 3.5% after hitting an over two-month low

on Tuesday.

Birkenstock ( BIRK ) advanced 6.3% after the footwear maker

beat market expectations for fourth-quarter results, while

General Mills ( GIS ) fell 2.5% as the Cheerios maker slashed

its annual profit forecast.

The Dow is set to snap a nine-session losing streak, its

longest since February 1978, lifted by UnitedHealth Group's ( UNH )

3.2% rise.

Despite some jitters over future Fed policy, stocks are on

track to end the year strong with the S&P 500 up over 27%, the

Nasdaq up over 34% and the Dow up nearly 16%.

The rally has been fueled by technology companies that

capitalized on the euphoria around artificial intelligence, the

prospects of a lower rate environment and hope of pro-business

policies from the incoming Donald Trump administration.

Crypto-focused stocks slipped as bitcoin fell more

than 2%. MARA Holdings ( MARA ) and Riot Platforms ( RIOT ) down

1.5% and 2.2%, respectively.

Advancing issues outnumbered decliners by a 1.03-to-1

ratio on the NYSE, while declining issues outnumbered advancers

by a 1.02-to-1 ratio on the Nasdaq.

The S&P 500 posted five new 52-week highs and eight new

lows, while the Nasdaq Composite recorded 67 new highs and 106

new lows.