U.S. Stocks Split on Wednesday as Fed Holds Rates Steady
The Dow Jones Industrial Average inched higher by 12.19 points, a marginal 0.025% gain, settling at 49,015.60.
The Nasdaq advanced 40.35 points, climbing 0.17% to finish at 23,857.45, whereas the S&P 500 dipped fractionally by 0.57 points—a 0.01% decline—closing at 6,978.03.
The Federal Reserve maintained its benchmark rate within the 3.5% to 3.75% corridor on Wednesday, characterizing economic expansion as proceeding at a "solid" clip.
During a post-decision briefing, Fed Chair Jerome Powell indicated the central bank could contemplate rate cuts once inflation pressures ease.
Powell projected that "the effects of tariffs flowing through goods prices peaking and then starting to come down, assuming there are no new major tariff increases that are begun."
"And that's what we expect to see over the course of this year. If we see that, that would be something that tells us that we can loosen policy," he added.
Powell characterized America's growth trajectory as notably improved compared to the previous year's outlook.
"If you look at the incoming data since the last meeting, (there is) clear improvement in the outlook for growth," he said at a press conference after the central bank's policy decision.
"Inflation performed about as expected, and as I mentioned, some of the labor market data came in suggesting evidence of stabilization. So it's overall a stronger forecast really."
Corporate news weighed on specific sectors. Amazon stock declined approximately 0.4% following the tech behemoth's announcement of 16,000 additional job cuts aimed at streamlining operations and reallocating capital toward aggressive artificial intelligence investments.
UPS shares tumbled over 3.1% Wednesday after the logistics titan disclosed plans Tuesday to slash 30,000 more positions throughout the year as part of efforts to terminate its Amazon partnership and execute a multi-year turnaround strategy.
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