The major US stock indices closed the day with mixed results following the FOMC decision to keep rates unchanged, as widely expected. The Dow Jones Industrial Average slipped modestly, while the S&P 500 ended virtually unchanged. The NASDAQ Composite posted a slight gain, and the Russell 2000 outperformed with a stronger rise.

Federal Reserve Chair Jerome Powell expressed continued confidence in the strength of the US economy, noting that the labor market remains broadly healthy, despite some concerns for those struggling to re-enter the workforce. The Fed revised its 2025 GDP growth forecast lower, raised its inflation projection, and nudged its unemployment estimate slightly higher.

Tariffs were a key theme, with Powell and Fed officials warning that inflation could rise further in the coming months due to tariff-related pressures. That concern has made the Fed more cautious in its forward guidance. While the median forecast still reflects two rate cuts before year-end, seven policymakers now project no change in policy, up from four in March—underscoring growing divisions within the committee.

Closing Levels:

  • Dow Jones: -44.14 points (-0.10%) at 42,171.66

  • S&P 500: -1.85 points (-0.03%) at 5,980.87

  • NASDAQ: +25.18 points (+0.13%) at 19,546.27

  • Russell 2000: +11.00 points (+0.52%) at 1,112.96

Source: Forex Live