US stocks closed higher in a choppy session Wednesday as investors digested fresh signals from the Federal Reserve and growing uncertainty around global trade policy.
Fed holds steady, warns on dual risks
The S&P 500 rose 0.43% to finish at 5,631, while the Nasdaq gained 0.27%, ending at 17,738. The Dow Jones Industrial Average led gains, up 284 points, or 0.70%, closing above 41,000.
As expected, the Federal Reserve kept interest rates unchanged, holding the federal funds rate in a range of 4.25% to 4.5%. But the tone of the post-meeting statement was more cautious. Policymakers flagged increasing risks of both inflation and unemployment, with Chair Jerome Powell warning that recently announced tariffs—if sustained—could spark slower growth, longer-term inflation, and job losses.
Analysts say the message was clear: the Fed is not in a hurry to cut rates, and it’s now equally concerned about both sides of its mandate.
Trade tensions and chip policy move markets
Meanwhile, markets responded to a Bloomberg report that the Trump administration plans to reverse Biden-era export restrictions on advanced AI chips—a move seen as a win for the semiconductor sector. Nvidia rose 3% on the news.
Trade tensions remain front and center. President Trump said earlier in the day that he would not consider lowering his 145% tariffs on Chinese goods ahead of planned meetings with Beijing officials in Switzerland this weekend.
Tech under pressure
Not all tech stocks shared in the rally. Alphabet tumbled 7% and Apple slipped 1% after news that Apple may soon add new AI-powered search options to its Safari browser—casting doubt on its long-standing default search deal with Google.
Commodities and the dollar
WTI crude is trading 1.96% lower at US$57.93 a barrel.
Brent crude is trading 1.96% lower at US$60.93 a barrel.
Spot gold is trading 1.83% lower at US$3369.12 an ounce.
One Australian dollar is buying 64.25 US cents.
Futures
The SPI futures are pointing to a modest 7 point rise.
