NEW YORK, May 7 (Xinhua) -- U.S. stocks ended higher on Wednesday, as investors weighed the Federal Reserve's decision to keep interest rates unchanged and looked ahead to upcoming trade negotiations between the United States and China.
The Dow Jones Industrial Average rose 284.97 points, or 0.70 percent, to 41,113.97. The S&P 500 added 24.37 points, or 0.43 percent, to 5,631.28. The Nasdaq Composite Index increased by 48.50 points, or 0.27 percent, to 17,738.16.
Eight of the 11 primary S&P 500 sectors ended in green, with consumer discretionary and technology leading the gainers by adding 1.02 percent and 0.91 percent, respectively. Meanwhile, communication services and materials led the laggards by losing 1.84 percent and 0.50 percent, respectively.
The Federal Reserve held its benchmark interest rates steady at a range of 4.25 percent to 4.5 percent for the third consecutive meeting, as expected. In its policy statement, the Fed acknowledged that the risks of both higher inflation and rising unemployment had increased, reflecting growing economic uncertainty.
"The (Federal Open Market) Committee is attentive to the risks to both sides of its dual mandate and judges that the risks of higher unemployment and higher inflation have risen," the post-meeting statement read.
During his press conference Wednesday afternoon, Fed Chair Jerome Powell emphasized that the central bank is not in a "hurry" to begin cutting rates and would instead adopt a "wait-and-see" approach, especially as it evaluates the economic impact of the recent tariff increases.
"My gut tells me that uncertainty about the path of the economy is extremely elevated and that the downside risks have increased," he said. "There are cases in which it would be appropriate for us to cut rates this year, there are cases in which it wouldn't. We just don't know."
Markets also drew some optimism from trade developments. On Tuesday, it was announced that senior U.S. and Chinese officials will meet this weekend for their first major trade talks since U.S. President Donald Trump raised tariffs on Chinese imports to 145 percent in April. The meeting is seen as a potential step toward de-escalation, although expectations remain cautious.
Adding pressure to Wednesday's market session were sharp losses in Alphabet and Apple shares, which fell 7.51 percent and 1.14 percent, respectively. According to a report from Bloomberg, Apple's services chief revealed that the company is exploring the integration of artificial intelligence-powered search options into its Safari browser. While the move could enhance Apple's AI offerings, it also raised speculation that the company may eventually end its longstanding partnership with Google, which currently powers Safari's default search.
