Indexes: Dow down 0.01%, S&amp;P 500 down 0.09%, Nasdaq up 0.10%
Fed keeps rates steady, cites stabilizing jobs market, high inflation
Traders still bet first rate cut will be in June
Investors wait for Mag 7 earnings
(Updates prices)
By Sinéad Carew and Pranav Kashyap
Jan 28 (Reuters) - The S&amp;P 500 held its losses on Wednesday after the Federal Reserve kept interest rates unchanged as was widely expected by investors and it gave little indication when borrowing costs might fall again.
In its statement, the Fed cited still-elevated inflation alongside solid economic growth for its decision. The U.S. central bank said the job market has “shown some signs of stabilization” and removed language from its prior statement saying that downside risks to employment had risen.
Investors had widely expected the central bank to keep rates unchanged at 3.5%–3.75%. After the statement, traders boosted their bets that the Federal would cut short-term borrowing costs in June - but not before then.
After digesting the Fed’s statement investors will closely monitor Chair Jerome Powell’s remarks, for clues on the future rate trajectory. This meeting arrives against the backdrop of a Justice Department inquiry launched earlier this month involving Powell as well as recent hints from U.S. President Trump that the next Chair will be named “soon”.
“The real action will be in the press conference, or if President Trump tries to steal their thunder by saying who his new chair pick is and that he would have gotten the job done in cutting rates,” said Brian Jacobsen, chief economic strategist at Annex Wealth Management in Brookfield, Wisconsin.
At 2:15 p.m. the Dow Jones Industrial Average (.DJI) fell 5.89 points, or 0.01%, to 48,997.52, the S&amp;P 500 (.SPX) lost 6.45 points, or 0.09%, to 6,972.15 and the Nasdaq Composite (.IXIC) gained 21.67 points, or 0.10%, to 23,839.66.
The benchmark index had briefly topped 7,000 points for the first time earlier in the session.
Tim Ghriskey, senior portfolio strategist at Ingalls &amp; Snyder in New York, said the Fed’s decision “shows they are more comfortable with the economy. It certainly won’t satisfy the White House, but the White House is never satisfied.”
‘MAG 7’ KICKS OFF EARNINGS
Besides watching out for the Fed update, investors have also been waiting for a wave of Big Tech earnings due out after the market close. Meta (META.O) , Microsoft (MSFT.O) and Tesla (TSLA.O) report after market close, kicking off the so-called “Magnificent Seven” earnings that have driven the AI trade, powering markets to record levels. Bellwether IBM (IBM.N) is also due to report after the close.
With lofty valuations driving rotation into undervalued areas of the market, the group’s capital plans will be closely watched as investors question whether AI spending will drive returns.
Declining issues outnumbered advancers by a 1.46-to-1 ratio on the NYSE where there were 486 new highs and 80 new lows.
On the Nasdaq, 1,753 stocks rose and 2,920 fell as declining issues outnumbered advancers by a 1.67-to-1 ratio. The S&amp;P 500 posted 36 new 52-week highs and 10 new lows while the Nasdaq Composite recorded 95 new highs and 110 new lows.

Meta Q4 Earnings

The S&P 500 held losses after the Federal Reserve maintained interest rates at 3.5%-3.75%, citing high inflation and a stabilizing job market. Traders anticipate the first rate cut in June. The Dow fell 0.01%, S&P 500 down 0.09%, while Nasdaq rose 0.10%. Investors await earnings from major tech companies, including Meta, Microsoft, and Tesla, as they assess the impact of AI spending on returns. Declining stocks outnumbered advancers on both NYSE and Nasdaq, with several new highs and lows recorded.

- The Federal Reserve maintained interest rates between 3.5% and 3.75% while citing stabilizing labor markets and high inflation as key factors.  
- U.S. stock indexes showed mixed results, with the Dow and S&P 500 declining, while the Nasdaq slightly increased, amid expectations of future rate cuts.  
- Investors are now focusing on forthcoming earnings from major tech companies as they anticipate the impact of AI spending on market performance.

US STOCKS-S&P 500 holds losses after Fed keeps rates steady as expected