The S&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 fell 5.89 points, or 0.01%, to 48,997.52, the S&P 500 lost 6.45 points, ​or 0.09%, to 6,972.15 and the Nasdaq Composite 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 & 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, Microsoft and Tesla 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 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&P 500 posted ‌36 new 52-week ⁠highs and 10 new lows while the Nasdaq Composite recorded 95 new highs and 110 new lows.

(Reporting by Sinéad Carew, Caroline Valetkevitch in ⁠New York, Pranav Kashyap and Twesha Dikshit in Bengaluru; Editing by Krishna Chandra Eluriu and Aurora Ellis)