The Commerce Department reported that orders for durable goods plunged 2.8 percent last month after increases in the previous three months. The stock market initially dropped sharply, but then pulled back up to trade mixed. Investors hope the U.S. economy rebounds from its recent slowdown, but they also don't want growth to be so strong that it warrants a rate hike by the Fed.

Given the market's turbulence over the past few weeks due to soaring bond yields, investors will be looking for any clues of policy makers' views on the economy and inflation in the central bank's statement Thursday, when it is expected to keep the benchmark rate steady at 5.25 percent.

The Fed has stated recently that it expects the economy will continue to recover from a weak first quarter despite difficulties in the housing market. However, it has reiterated that inflation remains a paramount concern.

"We'd like to hear a Fed that's much closer to the center, because they're still pretty hawkish. They sound closer to tightening than to easing," said Arthur Hogan, chief market analyst at Jefferies & Co. Rate hikes tend to slow down business and can dampen corporate profits.

A few strong earnings reports lent some support to the stock market Wednesday