US close: Stocks little changed as FOMC holds rates steady

(Sharecast News) - Major indcies were little changed at the close of trading on Wednesday as investors digested the Federal Reserve's decision to keep its benchmark overnight interest rate unchanged.

At the close, the Dow Jones Industrial Average was up 0.02% at 49,015.60, while the S&P 500 dipped 0.01% to 6,978.03, and the Nasdaq Composite saw out the session 0.17% firmer at 23,857.45.

The Dow closed just 12.19 points higher on Wednesday, doing little to reclaim the previous session's heavy losses.

Wednesday's primary focus was undoubtedly the Federal Reserve's move to leave interest rates unchanged, holding its benchmark range at 3.5%-3.75% after three cuts late last year, as policymakers waited for clearer evidence on how earlier easing is feeding through to the economy.

Officials have signalled they want more time to assess the impact of those reductions and indicated policy would only be loosened once price pressures begin to ease. "Uncertainty about the economic outlook remains elevated," the Fed said, adding that the committee remained alert to risks on both sides of its mandate.

The decision came as the central bank faces heightened scrutiny over its independence, with the Supreme Court reviewing a case that could have major implications for its authority. Chairman Jerome Powell earlier this month publicly pushed back against pressure from the Trump administration and reiterated a strong defence of Fed independence in his post-meeting presser, describing it as essential to preventing political influence over monetary policy and warning that its erosion would be difficult to reverse.

Elsewhere on the macro front, US mortgage applications fell by 8.5% in the week ended 23 January, according to the Mortgage Bankers Association, trimming the combined 47% surge since the start of 2026. Applications to refinance a mortgage, which are sensitive to short-term changes in interest rates, fell by 16%, while applications to purchase a new home were broadly flat.

In the corporate space, AT&T posted strong Q4 and FY results, saying it met or exceeded all of its 2025 financial guidance as the group delivered its best year for consumer broadband subscriber growth in a decade, while Starbucks traded higher despite reporting a slump in quarterly earnings, after the coffee shop giant posted a long-awaited uptick in sales.

After the close, Microsoft beat Wall Street estimates on both the top and bottom lines, with cloud revenue topping $50bn for the first time, while Meta also beat estimates with its Q4 numbers and provided some stronger-than-expected sales guidance, and IBM beat Q4 revenue estimates as it said AI had boosted software demand throughout the period.

Tesla, on the other hand, said revenue had fallen for the third quarter in a row and revealed full-year sales had declined for the first time on record.

Reporting by Iain Gilbert at Sharecast.com

Dow Jones - Risers

Intel Corp. (INTC) $48.78 11.04%

Unitedhealth Group Inc. (UNH) $294.02 4.00%

Johnson & Johnson (JNJ) $227.72 1.46%

Goldman Sachs Group Inc. (GS) $936.81 0.76%

Caterpillar Inc. (CAT) $644.40 0.68%

Visa Inc. (V) $326.98 0.53%

Chevron Corp. (CVX) $169.93 0.52%

Cisco Systems Inc. (CSCO) $78.96 0.36%

Travelers Company Inc. (TRV) $282.04 0.27%

Verizon Communications Inc. (VZ) $39.41 0.23%

Dow Jones - Fallers

Amgen Inc. (AMGN) $342.22 -2.59%

Nike Inc. (NKE) $62.24 -1.35%

3M Co. (MMM) $155.94 -1.34%

Home Depot Inc. (HD) $375.30 -1.33%

Boeing Co. (BA) $241.59 -1.21%

Walt Disney Co. (DIS) $109.56 -0.95%

Merck & Co. Inc. (MRK) $106.90 -0.95%

Apple Inc. (AAPL) $256.44 -0.71%

American Express Co. (AXP) $356.99 -0.68%

Procter & Gamble Co. (PG) $147.34 -0.67%

S&P 500 - Risers

Seagate Technology Plc (STX) $442.93 19.14%

Intel Corp. (INTC) $48.78 11.04%

Western Digital Corp. (WDC) $279.70 10.70%

Texas Instruments Inc (TXN) $216.17 9.94%

F5 Inc. (FFIV) $292.36 8.11%

Microchip Technology Inc. (MCHP) $80.28 6.81%

Micron Technology Inc. (MU) $435.28 6.10%

Elevance Health Inc. (ELV) $341.85 5.86%

Msci Inc. (MSCI) $614.87 5.69%

AT&T Inc. (T) $24.07 4.65%

S&P 500 - Fallers

Amphenol Corp. (APH) $145.96 -12.20%

Skyworks Solutions Inc. (SWKS) $55.28 -7.94%

Textron Inc. (TXT) $86.79 -7.90%

Humana Inc. (HUM) $194.01 -6.69%

Alexandria Real Estate Equities Inc. (ARE) $54.61 -6.07%

VF Corp. (VFC) $19.11 -5.77%

Nektar Therapeutics (NKTR) $35.94 -5.50%

Albemarle Corp. (ALB) $184.33 -5.07%

Corning Inc. (GLW) $104.28 -4.98%

Danaher Corp. (DHR) $224.54 -4.76%

Nasdaq 100 - Risers

Seagate Technology Plc (STX) $442.93 19.14%

Intel Corp. (INTC) $48.78 11.04%

Western Digital Corp. (WDC) $279.70 10.70%

Texas Instruments Inc (TXN) $216.17 9.94%

Microchip Technology Inc. (MCHP) $80.28 6.81%

Micron Technology Inc. (MU) $435.28 6.10%

Analog Devices Inc. (ADI) $317.63 4.54%

PACCAR Inc. (PCAR) $123.06 1.86%

Synopsys Inc. (SNPS) $511.35 1.72%

Nvidia Corp. (NVDA) $191.52 1.59%

Nasdaq 100 - Fallers

Skyworks Solutions Inc. (SWKS) $55.28 -7.94%

DENTSPLY Sirona Inc. (XRAY) $12.30 -3.68%

Regeneron Pharmaceuticals Inc. (REGN) $751.13 -2.61%

Amgen Inc. (AMGN) $342.22 -2.59%

Paypal Holdings Inc (PYPL) $54.08 -2.58%

Paychex Inc. (PAYX) $102.45 -2.37%

Henry Schein Inc. (HSIC) $75.08 -2.33%

Dollar Tree Inc (DLTR) $119.10 -2.25%

Incyte Corp. (INCY) $101.18 -2.21%

Mondelez International Inc. (MDLZ) $57.73 -2.19%