U.S. stocks are drifting lower at midday ahead of the Federal Reserve's latest policy update and outlook on the economy.

FedEx rose 5 percent after the package delivery service reported that its income rose as growth in online shopping gave its ground-shipping business a lift.

Later Wednesday the Fed will release its latest policy statement following a two-day meeting. Investors expect more cuts to the Fed's economic stimulus program.

The Standard & Poor's 500 index slipped less than a point to 1,941 as of noon Eastern time.

The Dow Jones industrial average fell 33 points, or 0.2 percent, to 16,774. The Nasdaq composite declined six points, or 0.1 percent, to 4,331.

Bond prices rose. The yield on the 10-year Treasury note fell to 2.64 percent.