Equities Close Mixed Following Fed Pause as Traders Weigh Powell's Remarks

04:54 PM EST, 01/28/2026 (MT Newswires) -- US equity markets closed mixed on Wednesday after the Federal Reserve kept its benchmark lending rate steady, while traders assessed Chair Jerome Powell's post-policy meeting comments.

The Nasdaq Composite edged up 0.2% to 23,857.5, extending its winning streak to a sixth day. The Dow Jones Industrial Average was little changed at 49,015.6. The S&P 500, which hit an all-time high above the 7,000 level earlier in the session, also ended flat, at 6,978.

Most sectors ended in the red, led by real estate, while energy saw the biggest gain.

The US central bank held interest rates steady in a range of 3.50% to 3.75% at its first policy meeting of the year, saying there have been "some signs of stabilization" in the unemployment rate. It delivered three back-to-back 25-basis-point cuts last year amid concerns about the labor market.

Economic activity has likely been solid, the Federal Open Market Committee said Wednesday.

"After 175 (basis points) in cuts over the past two years, the Fed opted to move to the sidelines with policy seemingly now at a neutral level," Stifel Chief Economist Lindsey Piegza said in a report e-mailed to MT Newswires. "The big question remains, what's next?"

Powell, whose term as Fed chair ends in May, said that there is "clear improvement in the outlook for growth," according to a CNBC report. "Inflation performed about as expected," he was quoted as saying.

Morgan Stanley interpreted the FOMC statement as a "dovish hold."

"We do not read the statement as signaling the easing cycle is over or the Fed desires a long pause," the firm said.

US Treasury yields were little changed, with the 10-year and two-year rates at 4.25% and 3.58%, respectively.

Gold futures rallied past the $5,400 level on Wednesday as a weak US dollar added support to the yellow metal that has been propelled to all-time highs amid mounting geopolitical concerns. Silver futures surged 10% to $116.72.

President Donald Trump said on Tuesday that the dollar's value was "great," when asked if he thought it had declined too much, CNBC reported.

"A key accelerant behind the renewed demand for hard assets has been the US dollar, which has come under increasing pressure in recent weeks," Saxo Bank Head of Commodity Strategy Ole Hansen said in a Wednesday report. "Short-term concerns about a potential US government shutdown have resurfaced following disputes around funding for the Department of Homeland Security, adding to an already fragile backdrop for the currency."

West Texas Intermediate crude oil was last up 1.7% at $63.46 a barrel. Trump warned Iran of an attack "far worse" than last year's strikes as he pushed Tehran to reach a nuclear deal.

"Iran strikes, even if highly telegraphed and choreographed, would raise Hormuz blockage concerns," Macquarie said in a note emailed to MT Newswires on Wednesday. The Strait of Hormuz is a key oil shipping channel.

In company news, Seagate Technology (STX) shares jumped 19%, the best performer on the S&P 500. The company delivered a quarterly beat late Tuesday.

Texas Instruments (TXN) was among the top gainers on the S&P 500, up 9.9%. The semiconductor manufacturer late Tuesday issued a first-quarter outlook above market estimates at the midpoint.

Textron (TXT) shares sank 7.9%, among the steepest declines on the S&P 500, after the company provided a downbeat fiscal 2026 adjusted earnings outlook.

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