India, Aug. 30 -- Wall Street starts its trading on Monday as investors balance the risk of a potential rate hike by the Fed against a robust US stock market performance. On Friday, the Dow Jones Industrial Average ended the day at 53,559.99, falling 9.45 points or 0.02%. The S&P 500 declined 0.25% to 7,711.76, while the Nasdaq Composite fell 0.52% to 26,402.42. The pressing issue in the market today will be whether the Dow Jones is able to make a comeback amid the Fed's emphasis on inflation.

Fed Policy Takes Centre Stage

Fed policy is expected to be the main theme early in the week. According to Warsh, the Fed would have even more work to do if policymakers did not feel comfortable with inflation being on its way to the Fed's 2% targe...