New Delhi, July 29 -- It's one of the biggest days of the year for markets, and Wall Street remains on edge as several potential pitfalls lie ahead.

The stakes are high with the S&P 500 on pace for its second consecutive negative month, an index of the so-called Magnificent Seven tech giants slipping into correction territory, and Treasury bond yields holding near the highest levels in two years.

Traders are pricing in a surprisingly high 30% chance of a Federal Reserve rate hike, with the odds of a move in September pegged at 78%, heading into Wednesday's meeting.

Commentary from Chairman Kevin Warsh, who has eschewed the traditional practice of guiding markets toward a particular Fed decision, will be key to determining the market's ...