By Anora Mahmudova, MarketWatch

NEW YORK (MarketWatch) -- U.S. stocks pulled back from session lows on Wednesday ahead of the Federal Reserve's policy decision and after rate hikes in Turkey and South Africa failed to stem selloffs in their currencies.

After steep drops in emerging-markets currencies last week, several central banks acted to stop the run on their currencies. India, Turkey and most recently South Africa raised their interest rates. But even the big rate hike in Turkey won't stop speculators taking the Turkish lira down, said analysts, and the lira and South African rand dropped Wednesday.

The failure of emerging-markets central banks to stem the asset flight has rattled U.S. stock investors, who are fearful of a spreading global crisis and cognizant that last year's steep U.S. equities gains aren't likely to be replicated. Read the stock market live blog.

The S&P 500 (SPX) traded 6.7 points, or 0.4% lower at 1,785.61, erasing some of the modest gains from the previous session. The Dow Jones Industrial Average (DJI) began the day with triple-digit losses, but recouped some of them and traded 85 points, or 0.5% lower at 15,841.27. The Nasdaq Composite (RIXF) fell 14.9 points, or 0.4% to 4,083.53.

Joe Bell, senior equity analyst at Schaeffer's Investment Research said today's selling is not entirely due to the emerging market selloffs.

"Emerging markets have been underperforming for a while now, and since October of last year have been on the downtrend. What we are seeing right now is a mild panic selloff triggered by fears over emerging markets," Bell said.

"Markets have rallied too far too fast last year and are overextended. Earnings have not been too terrible, but they have not been great either. This consolidation is still mild given the record levels we've reached only a few weeks ago," he added.

Investors will also focus on the Fed, which at 2 p.m. Eastern Time is widely expected to announce a decision to trim its bond-buying program again. Investors are also watching to see if the Fed axes its 6.5% unemployment threshold for raising interest rates.

A mixed bag of earnings added to pessimism on Wall Street.

Boeing (BA) reported better-than-expected fourth-quarter earnings, as profits rose from the same period a year ago. However, the company's outlook for 2014 was below expectations. Shares slid 4.5%.

Dow Chemical (DOW) shares jumped 3.7% after the company posted earnings that beat estimates and said it sees positive global economic growth in 2014.

Shares of Yahoo (YHOO) fell 6.8% after its results disappointed late Tuesday, prompting concerns that Chief Executive Officer Marissa Mayer still doesn't have a grip on turning around the Internet services company.

Shares of AT&T (T) fell 2.1% in the wake of late-Tuesday earnings.

Electronic Arts Inc. (EA) regained footing and rose 2.2% after slipping late Tuesday on news the company cut its sales outlook on sliding sales of games for aging consoles.

VMware Inc. (VMW) shares were off 0.4% after the virtualization software maker reported its results late on Tuesday.

Facebook will report results after the close and is forecast to post fourth-quarter earnings of 27 cents a share. Shares in the social network site were down 1.3%. See our preview: Does Facebook still have a teen problem?

In other markets, gold edged higher and oil futures dropped ahead of U.S. crude supply data, though natural gas remained firmer.

More must-reads from MarketWatch:

Why an emerging-markets crash wouldn't matter

12 steps to a blissful retirement

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