Stocks edged higher Wednesday, after the Federal Reserve indicated that a growing number of the central bank’s policymakers now expect to cut interest rates this year.

The central bank held rates steady, but the indication about a future cut seemed to confirm the view of investors, who in recent weeks had become increasingly certain the Fed would act this year to counter economic headwinds related to the trade war.

“The Fed is moving in the direction of what the market is pricing,” said David Lefkowitz, a senior strategist at UBS Global Wealth Management. “I think the market is satisfied that there’s some movement in their direction.”

After the interest rate announcement, the S&P 500 finished the day up 0.3 percent. Defensive sectors such as health care and utility stocks, businesses that hold up well during periods of weak economic growth, led the market’s gains.