US stock markets closed with mixed results on Wednesday following the Federal Reserve's decision to maintain interest rates, signaling caution amid robust economic growth and internal policy disagreements. The Dow Jones Industrial Average fell 0.38%, while the Nasdaq Composite edged up 0.15%, buoyed by gains in chipmakers and tech giants.
Eight of the S&P 500's 11 sectors declined, with materials and real estate leading losses. Utilities and technology sectors bucked the trend, rising 0.69% and 0.43%, respectively. Nvidia and Broadcom each gained 2%, while Microsoft and Alphabet saw modest increases.
The Federal Open Market Committee voted 9-2 to keep the benchmark rate at 4.25%-4.5%, marking the first split decision since 1993. Dissenting officials cited controlled inflation and a softening labor market as reasons to cut rates. Fed Chair Jerome Powell emphasized monitoring tariff impacts on inflation.
Earlier data revealed the US economy grew at an annualized 3% in Q2, surpassing expectations. This growth, coupled with the Fed's pause, highlights ongoing debates about balancing economic momentum with inflationary risks.
