Wall Street stays mixed after Federal Reserve leaves rates unchanged

U.S. stocks were mixed Wednesday in early trade after the Federal Reserve suggested fewer interest rate cuts next year than expected earlier.

The S&P 500 rose 0.1% midway through the day after a brief dip following the Fed statement. The Dow Jones Industrial Average increased 216 points, or 0.6%. Eastern time, and the Nasdaq composite slipped 0.1% lower.

The Fed has held the main interest rate unchanged as expected. Officials said they may raise the rates once more this year, as the Fed tries to guide inflation back down to its target of 2%.

The tepid market reaction was a nod to a Fed suggestion that it may cut rates next year only by half a percentage point. Fed had earlier said it might reduce the rates by a full percentage point in 2024.