US stocks rose Wednesday, buoyed by companies like Wells Fargo, Intel and Tesla as investors reacted to the Federal Reserve's decision to keep interest rates steady and tracked ongoing developments in west Asia.
The Dow Jones Industrial Average gained 141 points, or 0.3%, while the S&P 500 increased 0.4%, and the Nasdaq Composite rose 0.5%.
The Fed maintained its benchmark overnight borrowing rate in the 4.25% to 4.5% range, where it has remained since December. Despite holding rates steady, the central bank lowered its growth forecast and raised its inflation outlook for 2025. It also signaled expectations for two rate cuts later this year.
“Uncertainty about the economic outlook has diminished but remains elevated. The Committee is attentive to the risks to both sides of its dual mandate,” said the Fed in a statement.
Sentiment was also lifted by hopes for a de-escalation in the west Asia conflict, while bond yields declined. The dollar remained weak against major peers, down 0.23%.
President Donald Trump stated that Iranian officials had suggested visiting the White House, but he noted a "big difference" in talks compared to a week ago. When questioned about potential strikes on Iran, Trump said, “I may do it. I may not do it.” He also mentioned encouraging Israeli Prime Minister Benjamin Netanyahu to “keep going,” but clarified that he gave no indication of US military involvement.
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