US stocks end flat as investors assess fed decision

US stocks ended Wednesday’s session little changed, as investors assessed the Federal Reserve’s decision to keep interest rates unchanged, in line with expectations, amid indications that monetary policymakers are proceeding cautiously with further monetary easing.

At the close of the session, the Dow Jones Industrial Average settled at 49,015 points, after jumping to 49,150 points earlier in the session.

The broader S&P 500 index was flat at 6,978 points after surpassing the 7,000 level for the first time, while the Nasdaq Composite rose 0.17%, or 40 points, to 23,857 points.

The Nasdaq was supported by investors’ anticipation of earnings results from Meta, Tesla, and Microsoft, scheduled to be released after the market close.

In Europe, the STOXX Europe 600 index declined 0.75% to 608.5 points, amid broadly negative performance across most sectors and major stock exchanges.

Germany’s DAX fell 0.30% to 24,822 points, France’s CAC 40 declined 1.05% to 8,066 points, and the UK’s FTSE 100 slipped 0.5% to 10,154 points.

In Japan, the Nikkei 225 index closed flat at 53,358 points, while the broader Topix index fell 0.80% to 3,535 points.

As for oil, Brent crude futures for March delivery rose 1.23%, or 83 cents, to $68.40 per barrel, closing near their highest level in four months.

US Nymex crude futures for March delivery also increased by 1.31%, or the equivalent of 82 cents, to $63.21 per barrel.

Regarding gold, futures for the precious metal for February delivery surged 4.35%, or $221, to $5,303.60 per ounce, marking their eighth record close since the beginning of the year.

What’s behind the market moves?

The Federal Reserve indicated that economic activity is expanding at a strong pace, amid signs of stabilization in the unemployment rate. Meanwhile, Fed Chair Jerome Powell stated that current interest rates are appropriate to achieve the dual objectives of price stability and full employment, suggesting that policymakers are likely to proceed cautiously with further monetary easing.