By Mucahithan Avcioglu
ISTANBUL (AA) - US stocks closed with a mixed course midweek following the Fed's decision to keep the policy rate unchanged and the latest developments in the Israel-Iran conflict.
The Dow was down 0.1%, or 44.14 points to close at 42,171.66, and the S&P 500 slipped 0.03% to 5,980.87.
On the other hand, the Nasdaq gained 0.13% to finish at 19,546.27.
As anticipated, the Federal Reserve maintained its benchmark federal funds rate between 4.25% and 4.5%, which has been at that range since December.
"The Committee seeks to achieve maximum employment and inflation at the rate of 2 percent over the longer run," the Fed said in a statement.
The Fed warned that uncertainty about the economic outlook has diminished but remains elevated.
"The Committee will continue reducing its holdings of Treasury securities and agency debt and agency mortgage‑backed securities," it said.
The Fed also published its latest forecasts for the policy rate and the US economy.
It kept its forecast for the federal funds rate for the end of this year at 3.9%, indicating that there may be two rate cuts this year.
Chair Jerome Powell stated that policymakers are "well positioned to wait" before changing interest rates. He cautioned in a news conference after the decision was announced that "we're beginning to see some effects" of tariffs on inflation.
“The size of the tariff effects, their duration and the time it will take are all highly uncertain,” he said. “That is why we think the appropriate thing to do is to hold where we are as we learn more.”
Investors also continued to monitor the latest developments in the Israel-Iran conflict, which began with Tel Aviv’s airstrikes against Iran on Friday.
Israeli authorities said at least 24 people have been killed and hundreds injured since in Iranian missile attacks. Meanwhile, in Iran, 585 people have been killed and more than 1,300 wounded in the Israeli assault, according to Iranian media reports.
The VIX Index, also known as the “fear index," dropped 6.76% to 20.14.