US Indices close higher after Fed decision

US stocks closed higher on Wednesday after briefly dipping following the Federal Reserve’s warning about rising risks of inflation and unemployment and investor optimism over the prospects for trade relations with Beijing.

The Dow Jones Industrial Average climbed 0.70%, or 283 points, to close at 41,112 points.

The S&P 500 gained 0.43% to end at 5,631 points, while the Nasdaq Composite rose 0.27% to 17,738 points.

Nvidia shares surged 3.10% to $117.06 following media reports that the Trump administration is considering reviewing several chip export restrictions imposed by former President Joe Biden.

Stoxx Europe 600 fell 0.55% to 533.47 points, led by a 2.2% drop in the retail sector.

Germany’s DAX declined 0.6% to 23,115 points, France’s CAC 40 dropped 0.9% to 7,626 points, and the UK’s FTSE 100 slid 0.45% to 8,559 points.

Japan’s Nikkei slipped 0.15% to 36,779 points after a seven-session winning streak, while the broader Topix index edged up 0.3% to 2,696 points.

Brent crude futures for July delivery fell 1.66%, or $1.03, to settle at $61.12 per barrel, while US WTI crude for June delivery dropped 1.73%, or $1.02, to $58.07 per barrel.

Gold futures for June delivery declined 0.90% to settle at $3,391.90 per ounce.

The Federal Reserve held interest rates steady in the 4.25%–4.5% range at the conclusion of its meeting today, citing growing uncertainty over the economic outlook and heightened risks of rising inflation and unemployment.

Investors are now closely watching an upcoming meeting between the U.S. Commerce Secretary and his Chinese counterpart in Switzerland later this week, amid hopes the two sides will reach a resolution to end the ongoing trade war.