NEW YORK, July 30 (Xinhua) -- U.S. stocks ended mixed on Wednesday, after the Federal Reserve decided to keep interest rates unchanged during its July meeting.
The Dow Jones Industrial Average dropped 171.71 points, or 0.38 percent, finishing at 44,461.28. The S&P 500 declined 7.96 points, or 0.12 percent, to close at 6,362.9. In contrast, the Nasdaq Composite edged up 31.38 points, or 0.15 percent, reaching 21,129.67.
Eight of the S&P 500's 11 major sectors ended the day lower. Materials and real estate led the losses, falling 1.99 percent and 1.43 percent, respectively. On the other hand, utilities and technology saw gains, rising 0.69 percent and 0.43 percent, respectively.
The Federal Open Market Committee (FOMC), facing internal divisions, voted to keep its benchmark interest rate steady despite pushback from U.S. President Donald Trump and dissent from two key officials.
FOMC voted 9 to 2 to hold the federal funds rate within its current range of 4.25 percent to 4.5 percent. Though this rate governs overnight lending between banks, it also influences interest rates throughout the broader economy. The Fed can keep the interest rate steady while waiting to see if tariff policy pushes up inflation, U.S. Federal Reserve Chairman Jerome Powell said.
"Our obligation is to keep longer term inflation expectations well anchored and to prevent a one-time increase in the price level from becoming an ongoing inflation problem," Powell said. "Higher tariffs have begun to show through more clearly to prices of some goods, but their overall effects on economic activity and inflation remain to be seen."
Fed Vice Chair for Supervision Michelle Bowman and Fed Governor Christopher Waller both voted against the decision, urging rate cuts as they believe inflation is under control and signs of labor market softening are emerging. This marked the first time since 1993 that more than one Fed governor dissented in a single policy vote.
Earlier Wednesday, data issued by the U.S. Department of Commerce showed that the U.S. economy expanded at an annualized rate of 3 percent in the second quarter, significantly outpacing the 2.3 percent increase expected by economists.
Among major tech stocks, performance was mixed. Apple, Tesla, Amazon and Meta posted slight losses. Meanwhile, chipmakers Nvidia and Broadcom each gained around 2 percent. Microsoft along with Alphabet also registered modest increases.
