Stock market news today: US stocks flat in countdown to Fed

US stocks reversed early losses by mid-morning on Tuesday as investors brace for the Federal Reserve's upcoming policy decision.

Bonds rallied after the US Treasury cut its estimate of how much the government would need to borrow in the fourth quarter, easing some pressure on stocks. The 10-year Treasury yield -- Bank of Canada Governor Tiff Macklem urged elected officials to consider the inflationary consequences of their spending plans as the central bank tries to cool price pressures.

-- Israel’s military engaged in fierce battles with Hamas militants deep in the Gaza Strip and fired at targets in Lebanon in retaliation for attacks by Hezbollah. The fighting came as Prime Minister Benjamin Netanyahu said a cease-fire would only allow Hamas to regroup.

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