Equity Markets Close Mixed as Fed Keeps Policy Rate Steady

04:31 PM EDT, 06/18/2025 (MT Newswires) -- US benchmark equity indexes closed mixed on Wednesday as the Federal Reserve kept its policy rate unchanged for a fourth straight meeting, while maintaining its federal funds rate outlook for 2025 amid higher inflation expectations.

The Nasdaq rose 0.1% to 19,546.27, and the Dow Jones Industrial Average fell 0.1% to 42,171.66. The S&P 500 was little changed at 5,980.87 after posting gains for most of the session. Among sectors, technology led the advances, while energy posted the steepest decline.

US Treasury yields were lower with the 10-year rate decreasing 0.5 basis points to 4.38% and the two-year rate dropping 2.1 basis points to 3.94%.

August West Texas Intermediate crude oil increased 0.1% to $73.35 a barrel.

In economic news, the Federal Open Market Committee left interest rates in the range of 4.25% to 4.5%, in line with Wall Street's expectations. President Donald Trump has repeatedly urged the Fed to cut rates.

"Uncertainty about the economic outlook has diminished but remains elevated," the FOMC said Wednesday following its two-day meeting. "The committee is attentive to the risks to both sides of its dual mandate."

US housing starts in May fell more than projected, driven by a slump in multifamily projects, government data showed.

Homebuilding is likely to remain subdued in the coming months amid mortgage rates close to 7% and an uncertain economic outlook due to trade tensions, TD Economics said.

Weekly applications for unemployment insurance in the US declined, while a four-week average of continuing claims remained at the highest since November 2021, the Department of Labor said.

Building permits decreased by 2% to a 1.393 million rate in May, below the expectations of 1.42 million. Homes permitted but not started increased, and the outlook is mixed for starts to rebound next month.

In company news, Coinbase (COIN) shares jumped 16%, the top gainer on the S&P, and Circle Internet (CRCL) surged 34%. The US Senate passed the Genius Act, a bill establishing a federal framework for issuing and managing dollar-backed stablecoins for payments. The legislation passed with a 68-30 vote and now moves to the House.

Mastercard (MA) shares fell 5.4%, and Visa (V) dropped 4.9%, the biggest declines on the S&P.

TKO Group (TKO) shares jumped 4.8%. Citigroup raised the price target on TKO's stock to $200 from $170 and maintained its buy rating.

Gold decreased 0.5% to $3,391.40 per troy ounce, while silver fell 1.1% to $36.73 per troy ounce.

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