Stocks gave up earlier gains on Wednesday after Federal Reserve Chair Jerome Powell signaled that policymakers may not cut interest rates again this year. The losses were tamed by big gains from market heavyweights including Nvidia (NASDAQ: NVDA) throughout the session.
The Dow Jones Industrial Average (NYSE: DIA) slipped 0.16% to settle at 47,632.00, while the broader market S&P 500 Index (NYSE: SPY) ended the session below the flatline at 6,890.59. The tech-heavy Nasdaq Composite (NASDAQ: QQQ), meanwhile, outperformed its peers, rising 0.55% to end the day at a fresh record close of 23,958.47.
Moving markets, the Federal Reserve lowered its benchmark overnight borrowing rate by 25 basis points in a 10-2 vote on Wednesday in a decision widely anticipated by Wall Street. This is the second time that policymakers have cut rates this year, bringing the Fed's new target range between 3.75% to 4%. Moveover, the central bank said it would be ending its quantitative tightening initiative on Dec. 1.
The Fed's post-meeting statement did not provide investors clues on how policymakers plan to approach their December decision, but did highlight growing uncertainty from lack of economic data due to the ongoing U.S. government shutdown.
"Available indicators suggest that economic activity has been expanding at a moderate pace. Job gains have slowed this year, and the unemployment rate has edged up but remained low through August; more recent indicators are consistent with these developments," the meeting statement read. "Inflation has moved up since earlier in the year and remains somewhat elevated."
Fed Chair Jerome Powell said during his post-decision remarks Wednesday afternoon that there is "a growing chorus" of policymakers that want to "at least wait a cycle" before cutting rates again. This runs contrary to the statement from the Fed's September meeting, where central bankers had outlined three total interest rate cuts this year, implying that one more will occur.
"In the committee's discussions at this [October] meeting, there were strongly differing views about how to proceed in December," Powell said. "A further reduction in the policy rate at the December meeting is not a foregone conclusion. Far from it."
Earlier in the day, artificial intelligence powerhouse Nvidia advanced over 3% on Wednesday to become the first U.S. company with a market capitalization above $5 trillion. The moves come a day after the chipmaker announced a series of new deals, including a $1 billion stake in Finnish telecommunications company Nokia (NYSE: NOK).
On the earnings front, Boeing (NYSE: BA) posted strong third-quarter revenue, rising 30% annually to $23.27 billion. The aerospace manufacturers adjusted loss per share came in below expectations at $7.47, but that was attributed to a one-time charge related to the company's new jet, the 777X. Caterpillar (NYSE: CAT) reported adjusted profits per share of $4.88, and noted that higher manufacturing costs from tariffs offset higher sales volumes.
Fiserv (NYSE: FI) shares plummeted over 44% on Wednesday after the fintech company slashed its earnings outlook and announced leadership changes. For the full-year, Fiserv now expects adjusted earnings of $8.50 to $8.60 per share, down from its prior range of $10.15 and $10.30. The company also lowered its revenue growth outlook from 10% to as much as 4%.
Starting in December, Fiserv Operating Chief Takis Georgakopoulos will serve as co-President with former Optum Financial Services Chief Dhivya Suryadevara. The company also promoted Paul Todd to become its next chief financial officer, and added Gordon Nixon, Céline Dufétel and Gary Shedlin to its board, effective at the beginning of 2026.
Etsy (NASDAQ: ETSY) also announced a leadership shakeup on Wednesday, stating that the online marketplace's president and Chief Growth Officer Kruti Patel Goyal will take over as Chief Executive Officer on Jan. 1. Current CEO Josh Silverman will move to the role of executive chair at the end of the year.
Looking ahead, earnings from big tech companies such as Alphabet (NASDAQ: GOOG) (NASDAQ: GOOGL), Meta Platforms (NASDAQ: META) and Microsoft (NASDAQ: MSFT) are set to release after market close on Wednesday, followed by Apple (NASDAQ: AAPL) and Amazon (NASDAQ: AMZN) after closing bell on Thursday.