Stocks briefly popped but were holding onto earlier gains after the Federal Reserve kept interest rates steady and released its latest forecast for future rate cuts.
Federal Open Market Committee kept its target for the federal funds rate in a range between 4.25% and 4.5%, which was widely anticipated by markets.
For the rest of the year, the median forecast among officials suggest two cuts in 2025, which matches the prior forecast from March.
The Dow was up 120 points, or 0.3%. The S&P 500 was up 0.2%. The Nasdaq Composite was up 0.3%. All three spiked slightly in the wake of the interest-rate decision but gave back a chunk of those gains.
“Uncertainty about the economic outlook has diminished but remains elevated,” the FOMC’s statement read. “The Committee is attentive to the risks to both sides of its dual mandate.”