US stocks close mixed as investors weigh Fed decision, geopolitical risks

US stock indices closed mixed on Wednesday amid uncertainty surrounding Washington’s position on intervening in the war between Israel and Iran, as investors assessed the Federal Reserve’s decision to hold interest rates steady.

The Dow Jones Industrial Average dipped slightly by 0.10%, or 44 points, to close at 42,171 points.

The broader S&P 500 index was unchanged, ending at 5,980 points, while the Nasdaq Composite rose by 0.13%, or 25 points, to 19,546 points.

The Stoxx Europe 600 index fell by 0.35% to 540 points, trimming its year-to-date gains to 6.5%.

Germany’s DAX dropped by 0.50% to 23,317 points, and France’s CAC fell by 0.35% to 7,656 points. Meanwhile, the UK’s FTSE edged up slightly by 0.10% to 8,843 points.

Japan’s Nikkei 225 index rose by 0.90% to 38,885 points, marking its highest close since February 19. The broader Topix index also climbed by around 0.75% to 2,808 points.

Brent crude futures for August delivery rose by 0.25%, or 25 cents, to close at $76.70 per barrel.

US WTI crude futures for July delivery increased by 0.40%, or 30 cents, to $75.14 per barrel.

August futures for the yellow metal remained steady at $3,408.10 per ounce.

The Federal Reserve, in its meeting concluded on June 18, decided to keep interest rates unchanged within the range of 4.25% to 4.50%, citing continued momentum in economic activity.

Meanwhile, members of the Federal Open Market Committee (FOMC) maintained their projections for two rate cuts this year, despite raising their inflation estimates.

Regarding developments in the Middle East, former President Trump claimed that Iran requested to negotiate with him at the White House, but Tehran denied this.