PrintUS Equity Indexes Little Changed After Odds of Fed Rate-Pause in March Jump
BY MT Newswires | ECONOMIC | 04:57 PM EST04:57 PM EST, 01/28/2026 (MT Newswires) -- US equity indexes closed muted-to-slightly higher on Wednesday after bets for a monetary policy pause in March increased following the January meeting of the Federal Reserve.
The Nasdaq Composite rose 0.2% to 23,857.45 and the S&P 500 was almost unchanged at 6,978.03, after hitting a fresh record of 7,002.28 intraday, according to data compiled by CNBC. The Dow Jones Industrial Average leaned slightly higher to 49,015.60.
Energy and technology led the gainers at the close. Real estate, consumer staples, and health care emerged as the steepest decliners.
The Federal Open Market Committee kept the target rate for fed funds at 3.5% to 3.75%, as expected, on Wednesday, after cutting by 25 basis points in each of its three previous rate-setting meetings. The FOMC upgraded its description of economic growth to "expanding at a solid pace" from a "moderate pace."
"Job gains have remained low, and the unemployment rate has shown some signs of stabilization," the Fed policy statement said, adding that "inflation remains somewhat elevated."
The odds of a pause on March 18, when the rate setters next meet, jumped to 88% as of late Wednesday afternoon from 83% a day earlier and 47% a month ago, according to the CME FedWatch tool.
Most US Treasury yields rose, with the 10-year Treasury yield up two basis points to 4.24%.
After the bell, Microsoft
Meanwhile, Gold futures surged 5.9% to $5,382.9 per troy ounce, and silver futures soared 9.6% to $116.06 per troy ounce. Tensions over US-NATO/Greenland issues, the Trump administration's erratic tariff announcements, concerns surrounding the Fed's independence are among the factors driving a blistering rally in precious metals.
The ICE US Dollar Index, which reflects the greenback's performance against a basket of the world's major currencies, rose 0.2% to 96.38, attempting to recover from its lowest since early 2022.
The US has a strong dollar policy, and that means setting the right fundamentals, Treasury Secretary Scott Bessent said on Wednesday, while denying that Washington was intervening in currency markets to support the Japanese yen, Reuters reported.
West Texas Intermediate crude oil futures jumped 1.8% to $63.54 a barrel as US production remains limited following a polar vortex that brought freezing weather that cut output, while inventories unexpectedly fell last week.
In a social media post on Wednesday, President Donald Trump said a "massive armada" was headed to Iran, representing a larger fleet than the one sent to Venezuela, as he pushed Tehran to reach a nuclear deal. Iran controls the Strait of Hormuz, a key oil shipping channel in the Middle East.
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