The Dow Jones Industrial Average edged lower after some wavering Wednesday afternoon following the Federal Reserve's decision to keep interest rates unchanged. Stocks got an early boost as jobless claims eased, but then those gains dissipated by the close on the stock market today as Fed Chairman Jerome Powell said policymakers were "well positioned to wait" on interest rate cuts.
The Dow Jones Industrial Average slipped 0.1% at the close while the S&P 500 edged into negative ground. The benchmark S&P slipped below the psychologically important 6,000 level.
The tech-heavy Nasdaq composite, meanwhile, retained a meager 0.1% rise as small caps on the Russell 2000 climbed 0.6%. Further, the Innovator IBD 50 exchange traded fund added 0.6% as well. The ETF has formed a cup base that has a buy point of 34.26.
Volume on the New York Stock Exchange was higher and lower on the Nasdaq compared with the same time on Tuesday. Advancers outnumbered decliners on both exchanges by nearly 3-to-2.
The 10-year Treasury yield was unchanged at 4.39%. Oil prices eased, with West Texas Intermediate futures near $74.80 a barrel.
Stock Market Today: Where The Fed Sees Inflation Going
As expected, the Fed kept its key interest rate unchanged in the 4.25% to 4.5% range. In the Fed's Summary of Economic Projections, policymakers projected higher core inflation at 3.1% to 3.2% in 2025, compared to their projections in March. Inflation is expected to fall to a range of 2.3% to 2.4% in 2026, and then reach 1.9% to 2% in 2027.
The Federal Open Market Committee said downside risks to GDP growth had lessened since March.
At his news conference, Fed Chair Powell said inflation has eased significantly since 2022. However, near-term inflation expectations had moved up with tariffs as the driving factor. The median inflation projection for 2025 was 3%, up from 2.7% in March.
Powell added that the economy remains strong enough to allow the Fed to wait on rate cuts. Policymakers will see how the process in which tariffs will eventually pass through to consumer prices plays out.
Meanwhile, Jan Hatzius, chief economist for Goldman Sachs, said Wednesday that reciprocal tariffs set to arrive on July 9 after a 90-day tariff pause likely won't be enacted.
In stocks, Amazon started out in a buy zone Wednesday but ultimately ended the day below it. Shares of the e-commerce giant fell 1.1%.
3:13 p.m. ET
What The Fed's 'Dot Plot' Showed
The Fed's dot plot showed that the majority of participants anticipated rates easing gradually to 3.5% through 2027 and lower beyond. The median participant projected an appropriate rate of 3.9% at the end of this year — same as March, declining at a slower pace to 3.6% at the end of 2026. In March, the median projection stood at 3.4%.
"The Fed continues to overplay the inflation story and isn't paying attention to burgeoning demand weakness," Jamie Cox, managing partner at Harris Financial Group, said in a note to clients Wednesday. "While the dot plot forecasts three rate cuts through 2026, the more likely scenario is three rate cuts by the end of 2025."
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2:39 pm. ET
Fed Sits Pat On Rates
The Federal Open Market Committee said it plans to continue reducing its holdings of Treasury securities and agency debt, as well as agency mortgage‑backed securities.
1:55 p.m. ET
Trump Ponders TikTok Ban Delay; Amazon Hits Buy Zone
President Donald Trump was reported to be considering a delay on banning TikTok in the U.S. again. The latest 75-day extension to the social media app expires on Thursday.
Among Magnificent Seven stocks, Amazon touched a buy zone above an entry at 214.84. Shares were up 0.2% in recent action.
The e-commerce giant's autonomous vehicle company, Zoox, opened its first full-fledged production facility. The outfit aims to produce 10,000 robotaxis per year, TechCrunch reported.
12:31 p.m. ET
Stock Market Today: Here's What's Moving
Finance leaders gave the Dow Jones index a lift. JPMorgan Chase, American Express and Goldman Sachs all rose roughly 2%. Visa, however, lagged, dropping nearly 3%.
Tesla jumped nearly 3% as it was among the top gainers in the S&P 500. Making a huge move on the benchmark index was Coinbase, which surged more than 11%. Insurance stocks Allstate and Progressive lagged, each falling more than 2%.
In the Nasdaq, medical services stock Grail led with a 12% charge higher, while Marvell Technology and Datadog jumped nearly 7% and 4%, respectively. AppLovin and Intuit suffered with losses of nearly 4% and more than 1%, respectively.
Portfolio Management And Fed Announcements
Given the possibility for big market swings on Federal Reserve announcements, Investor's Business Daily's Jed Graham discusses what actions investors should take to protect their portfolios in this live coverage of Wednesday's event.
"A lot depends on individual investors' exposure levels and the type of stocks owned. If you have a large number of volatile stocks with high average true ranges, you might consider taking some profits, especially if you don't have much cushion in those names," Graham said.
"But much of this depends on your own investing style. If you're a swing trader, you might want to step back somewhat ahead of the Fed. If you're willing to risk big losses, you might stand pat," he adds.
Graham concludes: "Investors likely should be cautious about taking new positions on Fed day, though there were a number of names flashing buy signals Wednesday morning, including JPMorgan stock and Nintendo."
11 a.m. ET
Federal Reserve: Rates Expected To Remain In Place
Interest rates are seen staying unchanged after the Federal Reserve finishes its meeting Wednesday. But the Fed's "dot" plot — a look at where interest rates are headed — will be in focus. The Fed's Summary of Economic Projections will indicate the committee's projections of the most likely outcomes for inflation and growth.
Fed Chair Powell also is due to speak after the meeting. President Donald Trump reportedly lashed out at Powell again, lamenting the fact that the Fed probably won't cut rates.
Elsewhere, the U.S. Census Bureau said housing starts fell in May from April's 1.36 million to 1.26 million. Building permits also fell from 1.4 million to 1.38 million.
Among stocks, artificial intelligence database leader Oracle rose more than 2% after Guggenheim analysts increased their price target to $250 a share from $220. Shares are nearing a handle entry of 216.60, which is the stock's all-time high.
Recent initial public offering Circle jumped nearly 12% after the U.S. Senate approved the "Genius" bill late Tuesday, which establishes the first federal framework for dollar-pegged stablecoins. The bill now goes to the House.
Also, Texas Instruments gained nearly 1%. The company said it would invest more than $60 billion to build seven semiconductor factories in Texas and Utah.
9:53 a.m. ET
Stock Market Today: Broadcom, Palantir Make Moves
Early movers after Wednesday's opening bell were Broadcom and Palantir Technologies. Broadcom stock gained nearly 1% to move back above a 251.88 buy point, while Palantir climbed 1%, looking to bounce back from Tuesday's losses.
8:37 a.m. ET
Jobless Claims Ease
Ahead of Wednesday's open, the Labor Department's weekly unemployment claims eased to 245,000 vs. 248,000 in the previous week. They were expected to fall to 244,000, according to Econoday estimates.
8:03 a.m. ET
Stock Market Today: Trump Iran News, Fed Decision, Powell Comments
Trump early Tuesday called for Iran's "unconditional surrender" and said that "we" have control over Iran's airspace.
Trump also held a national security meeting in the White House Situation Room Tuesday. According to multiple reports, he was considering a potential U.S. airstrike on Iran. U.S. bunker-busters delivered by B-2 bombers are believed to be the only way to destroy Iran's deepest nuclear enrichment site at Fordow.
Wednesday's Federal Reserve meeting policy update, set for 2 p.m. ET, is likely to show a more hawkish near-term interest rate outlook. Federal Open Market Committee members are expected to pencil in just one rate cut for 2025 – and it won't be this week. That would indicate one fewer rate cut than the prior set of quarterly Fed projections showed in March. Fed Chair Powell's 2:30 p.m. ET press conference will give clues about future moves.
Finally, the Labor Department's weekly initial jobless claims are due out at 8:30 a.m. ET. Claims are expected to decline to 244,000 vs. 248,000 in the previous week, according to Econoday estimates.
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Dow Jones Leader Cisco At Buy Point
Elsewhere, Dow Jones artificial intelligence giant Cisco Systems broke out past a 65.75 buy point in a cup with handle in recent sessions, MarketSurge chart analysis shows, but is just below that buy trigger. Shares rose 0.1% in premarket trading Wednesday.
Meanwhile, cybersecurity leader Palo Alto Networks is in buy range above a 195.42 cup-with-handle entry. Palo Alto stock inched 0.2% higher in premarket trades Wednesday.
Finally, Antero Resources topped a 41.27 entry in a cup with handle during Friday's breakout move. The energy stock fell 1.2% in early action Wednesday.
The ongoing stock market uptrend provides a bullish setting for raising exposure, but investors still need to watch for volatility. Investors should buy stocks with a 21-day average true range, or ATR, of up to 8%. But they should be wary of being too concentrated in high-octane names.
Check out IBD MarketSurge's "Breaking Out Today" list for top growth stocks that are moving above correct buy points. Investors also can find potential breakouts on the "Near Pivot" list. Further, to find additional stock ideas, check IBD Stock Lists like IBD 50, Big Cap 20 and Stocks Near A Buy Zone.
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