Wall Street ended trading on a mixed note as investors weighed higher oil prices, Federal Reserve interest rate decision, and awaited earnings results from several major technology companies.
Major U.S. indices saw volatility after the Fed statement showed a notable split over the decision to keep interest rates unchanged, marking the largest divide in years, amid uncertainty over rising energy costs caused by tensions in the Middle East.
Crude prices also rose following reports that the United States is moving to tighten restrictions on Iranian exports, increasing concerns over continued supply pressure given the importance of Strait of Hormuz to global oil flows.
Analysts believe that ongoing tensions and higher energy prices could affect spending patterns, with the impact potentially appearing in corporate earnings over the coming periods.
In this context, Federal Reserve kept interest rates unchanged in a widely expected move, but the decision came amid renewed concerns over a return of inflationary pressure driven by higher energy costs.
On corporate earnings, several major technology companies within Magnificent Seven reported quarterly results, with stock performance mixed in after hours trading as investors focused on future guidance, particularly regarding capital spending and impact of artificial intelligence on business models.
On economic data, indicators showed an increase in new orders for core capital goods, pointing to an improvement in corporate spending plans.
By the end of the session, Dow Jones Industrial Average declined, while S&P 500 was little changed, and Nasdaq posted slight gains.
Energy sector led gains, supported by rising oil prices, while utilities and materials sectors came under pressure.
At stock level, Robinhood shares fell after disappointing results, while data storage stocks rose on positive forecasts. Starbucks climbed after raising its annual outlook, Visa advanced on improved earnings guidance, and NXP Semiconductors posted strong gains after results beat estimates.
Meanwhile, declining stocks outnumbered advancing ones on New York Stock Exchange and Nasdaq, with some stocks hitting new record highs while others touched yearly lows. Trading volume came below its recent average.
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