U.S. Stocks Close Little Changed Following Fed Decision

Market Overview - Major U.S. stock indexes experienced choppy trading, ending the day mixed with the S&P 500 down 0.57 points to 6,978.03, the Dow up 12.19 points to 49,015.60, and the Nasdaq rising 40.35 points to 23,857.45 [1] - The Federal Reserve announced its decision to keep interest rates unchanged at a target range of 3.50 to 3.75 percent after three consecutive quarter-point cuts [2] - The decision to maintain rates was not unanimous, with two Fed Governors advocating for a further quarter-point cut [2][4] Economic Outlook - The Fed's decision was influenced by elevated uncertainty regarding the economic outlook, emphasizing the dual mandate of maximum employment and maintaining inflation at 2 percent over the long term [3] - A majority of the Federal Open Market Committee (FOMC) appears to favor a pause in rate cuts unless the job market weakens further, with inflation remaining a concern [4] Sector Performance - Gold stocks surged, with the NYSE Arca Gold Bugs Index increasing by 2.7 percent to a new record closing high, driven by rising gold prices [5] - The NYSE Arca Computer Hardware Index rose by 2.6 percent, also reaching a new record closing high, largely due to a 19.1 percent increase in Seagate Technology's shares following better-than-expected fiscal second-quarter results [6] - Semiconductor and networking stocks showed considerable strength, while oil service, pharmaceutical, and biotechnology stocks experienced significant declines [7] International Markets - In the Asia-Pacific region, stock markets mostly moved higher, with Japan's Nikkei 225 Index up 0.1 percent, South Korea's Kospi up 1.7 percent, and Hong Kong's Hang Seng Index up 2.6 percent [7] - Conversely, major European markets declined, with the French CAC 40 Index down 1.1 percent, the U.K.'s FTSE 100 Index down 0.5 percent, and the German DAX Index down 0.3 percent [8] Bond Market - Treasuries saw a decline in prices following the Fed announcement, leading to a rise in the yield on the benchmark ten-year note by 2.8 basis points to 4.251 percent [9] Upcoming Events - Trading on Thursday may be influenced by earnings reports from major tech companies including Microsoft, Meta Platforms, and Tesla [9]