4:10pm: Flat trading across Wall Street
US markets ended Wednesday’s session largely flat, with investors digesting the Federal Reserve’s first policy decision of 2026.
The Nasdaq nudged higher by 0.2% to 23,857, adding 40 points, while the Dow Jones ticked up just 12 points to 49,016. The S&P 500 finished essentially unchanged at 6,978, having briefly crossed the 7,000 mark earlier in the session.
Meanwhile, the Russell 2000 slipped 0.5% to 2,653, weighed down by small-cap weakness.
The market’s muted reaction came after the Fed held interest rates steady in a widely expected move, keeping the benchmark range at 3.5% to 3.75% in a 10-2 vote. With the policy decision behind them, investors are now turning their focus to earnings from some of the biggest tech names, which could set the tone for trading in the weeks ahead.
3:20pm: 'Maximum flexibility'
Analysts said the statement’s removal of December language on employment risks and recognition of stable labor markets helped lift the dollar.
“The Fed has maintained maximum flexibility around the future of economic policy,” said Kathleen Brooks, research director at XTB, noting that the decision reinforces short-term dollar strength.
Jeffrey Roach of LPL Financial highlighted the more unified FOMC view, saying no policy change is expected at the March meeting. Markets reacted modestly, with gold continuing its rally.
2:45pm: Market movers
- VF Corp (NYSE:VFC, XETRA:VFP) beat earnings and revenue expectations in the third quarter, helped by strong holiday demand and margin expansion across its key apparel brands.
- Northstar Gold Corp. (CSE:NSG) secured access to up to $4 million in co-investment funding as part of a consortium advancing a digital “Surgical Mining” project focused on critical minerals such as copper.
- OKYO Pharma Ltd (NASDAQ:OKYO) received positive FDA feedback supporting the design and primary endpoint of its planned Phase 2b/3 trial of urcosimod for neuropathic corneal pain.
- Starbucks Corp (NASDAQ:SBUX, XETRA:SRB) topped revenue forecasts as U.S. comparable sales grew for the first time in nearly two years and international traffic, including in China, strengthened.
- Texas Instruments Inc (NASDAQ:TXN) forecast first-quarter revenue above estimates, signaling an improving recovery in analog chip demand despite a modest year-over-year profit decline.
- ASML Holding NV (NASDAQ:ASML, XETRA:ASME) reported far stronger-than-expected fourth-quarter orders and raised its medium-term outlook, citing robust and sustainable AI-driven demand for its EUV systems.
2:10pm: Fed holds rates
The Federal Reserve held interest rates steady on Wednesday, as widely expected, pausing its rate-cutting cycle for the first time since July despite dissent from two policymakers who favored a reduction.
The central bank kept its benchmark lending rate in a range of 3.5% to 3.75% following three consecutive cuts late last year, while Fed Governors Christopher Waller and Adriana Kugler dissented in favor of a 25-basis-point cut.
Chair Jerome Powell is due to comment later at a press conference.
12:45pm: BoC keeps rates steady
North of the border, The Bank of Canada kept its overnight rate unchanged at 2.25% on Wednesday.
The central bank said the economic outlook remains largely unchanged from October but is vulnerable to US trade policies and geopolitical risks.
While US growth remains strong, driven by AI investment and consumer spending, Canada faces export headwinds from tariffs, though domestic demand and employment are gradually improving. GDP growth is projected at 1.1% in 2026 and 1.5% in 2027, with fiscal policy providing modest support. CPI inflation rose to 2.4% in December due to base-year effects, but core measures have eased to around 2.5%, and overall inflation in 2025 was 2.1%.
The Bank said current policy remains appropriate but stands ready to respond if risks materialize, emphasizing its commitment to price stability.
11:45am: Gold hits new record
Gold climbed to a fresh record while US equities pushed higher on Wednesday as a weaker dollar buoyed risk assets ahead of major tech earnings and a Federal Reserve decision.
Market participants attributed the dollar’s slide to renewed political pressure, a move that has helped lift commodities and stocks. “Those hoping for a quiet day ahead of tech earnings and the Fed decision have been disappointed,” said Chris Beauchamp, chief market analyst at IG. “Investors are digesting the ramifications of Trump’s decision to give the dollar a shove lower… For gold bugs the news is manna from heaven, promising the breaking of more records in the weeks to come.”
10:50am: Fed decision ahead
The Federal Reserve is expected to keep interest rates unchanged later today, with markets pricing less than a 3% chance of a rate cut and the benchmark rate seen holding at 3.5%–3.75%, according to Kathleen Brooks, research director at XTB.
After delivering 75 basis points of cuts since September, the Fed is widely seen as having paused its easing cycle amid signs of a resilient US economy. Unemployment stands at 4.4%, while fourth-quarter GDP growth is forecast to exceed 5.4%, based on the Atlanta Fed’s GDPNow model.
“It is extremely hard to justify further rate cuts on economic grounds,” Brooks said, adding that current interest rates are likely within neutral territory.
Brooks expects Fed Chair Jerome Powell to signal policy flexibility, while reiterating that future decisions will remain data-dependent. Markets are now pricing fewer rate cuts this year, with the first not expected until late July.
9.55am: S&P crosses 7,000, but Dow dips at open
US stocks have got off to a mixed start again, though the S&P 500 climbed 0.3% to crack the 7,000 milestone for the first time.
The Nasdaq rose 0.4% in initial trades, while the Dow Jones opened higher before falling a handful of points into the red.
Driving the S&P gains were Seagate Technology, which reported earnings overnight, up 15.8%.
Next was networking specialist F5 Inc, and a group of semiconductor and memory names, including Intel, Western Digital, SanDisk, Microchip Technology, Texas Instruments, ON Semiconductor, Micron Technology and NXP Semiconductor.
Dragging the Dow down was a 2.8% fall for Boeing, with Apple and Amgen also among those in the red, down 0.85% and 0.7%. Half the Dow's 30 names were in the red.
8am: S&P set for new record high, Nasdaq tech stocks leading the way
US stocks are set for an uneven start on Wednesday, ahead of the Federal Reserve decision due after lunchtime and the earnings this evening from big tech trio Microsoft, Meta Platforms and Tesla.
Ahead of the opening bell, Dow Jones futures were flat, while Nasdaq futures were up 0.85%. In between, the S&P 500 was seen opening up 0.3% higher, rising to new heights after finishing at a record high last night.
The S&P added 0.4% to close at 6,978, while a sharp fall for UnitedHealth dragged the Dow 0.8% lower to 49,003. Optimism about big tech earnings helped lift the Nasdaq 0.9% to 23,817 by the close.
Dollar weakness in recent days was halted, with the DXY index having climbed back above 96 in the early hours after reaching a four-year low against the euro and a 10-year nadir versus the Swiss franc.
On Wednesday, the USD was up 0.5% against the euro, back below $1.2, and up 0.4% against the British pound, having hit $1.385 for the first time since 2021 a day earlier.
The greenback sank to multi-year lows after President Trump said "the dollar’s doing great" and that he could make it "go up or go down like a yo-yo", while complaining about China and Japan devaluing their currency.
Last night, President Trump also posted on Truth Social that he "will announce Fed chair soon; interest rates will come down after new Fed chair".
Currency volatility "is back," said market analyst Neil Wilson at Saxo, with the market taking Trump's comments as "a cue" to keep selling the buck.
"If no one else believes in the strong dollar any more, then why seek to argue for a strong dollar policy? There are risks to this, of course, and big market swings and dislocations.
"We await to see if the administration seeks to walk it back – a weaker dollar should mean higher inflation for US consumers."
News on Wednesday before the opening bell included Amazon officially confirming plans to cut a further 16,000 jobs, adding to the 14,000 layoffs announced in the fall.
In a message to staff, the company said: "Some of you might ask if this is the beginning of a new rhythm – where we announce broad reductions every few months. That’s not our plan."