WASHINGTON — The Federal Reserve announced Wednesday it will leave its benchmark interest rate unchanged, marking the fifth consecutive meeting without a rate hike or cut. The decision extends the Fed's longest pause since the 2008 financial crisis, signaling continued caution on inflation.
Major U.S. equity indices posted mixed reactions. The Dow Jones Industrial Average dropped 1.4 percent to 52,025, while the S&P 500 fell 0.3 percent to 7,406.
Nvidia shares fell 1.8 percent to $193.41, reflecting investor concern about growth prospects in a sustained higher-rate environment and potential pressure on enterprise spending. Microsoft gained 1.4 percent to $398.81 and Alphabet rose 1.8 percent to $339.77, demonstrating resilience built on diversified revenue streams and strong cloud demand.
The Nasdaq Composite traded flat at 24,867, suggesting a market divided on where monetary policy goes next. Apple climbed 1.1 percent to $343.90, Amazon increased 0.3 percent to $231.46, and Meta Platforms rose 0.6 percent to $596.77, as each company benefits from stable consumer spending despite elevated rates.
The Fed's sustained pause reinforces a higher-for-longer interest rate narrative that directly pressures discounted cash flow models. That backdrop favors companies with strong free cash flow and clean balance sheets — those that can fund growth internally without cheap external financing. The Russell 2000 declined 1.1 percent to 2,920, with smaller firms facing higher capital costs and reduced access to financing that leaves them more exposed to any economic slowdown.
