Fed's Stabilizing Hold: S&P 500 Stays Steady Amid Tariff Tensions

The S&P 500 closed flat on Wednesday after an eventful trading day, with the U.S. Federal Reserve opting to leave interest rates unchanged. This decision came amid expectations, as Federal Reserve Chairman Jerome Powell emphasized that monetary policy needs to maintain economic restraint.

Powell addressed the anticipated inflation in goods, pinpointing President Trump's tariffs as a catalyst, set to affect consumers over the summer. Though borrowing costs could decrease this year, the pace of rate cuts is slowing, pointing to a tempered future outlook.

Amid these financial developments, concerns were also rising over U.S.-Iran tensions, with investors monitoring potential military escalations in the Middle East. As preliminary data showed, the S&P 500 dipped 2.37 points to 5,980.35, while the Nasdaq and Dow Jones displayed mixed movements.

(With inputs from agencies.)