NEW YORK, New York - U.S. stocks remained directionless Wednesdfay after the FOMC meeting of the Federal reserve decided to leave interest rates unchanged as expected. "Available indicators suggest that economic activity has been expanding at a solid pace. Job gains have remained low, and the unemployment rate has shown some signs of stabilization. Inflation remains somewhat elevated," the committee said in a statement following their two-day meeting, which ended Wednesday.

"The Committee seeks to achieve maximum employment and inflation at the rate of 2 percent over the longer run. Uncertainty about the economic outlook remains elevated. The Committee is attentive to the risks to both sides of its dual mandate."

"In support of its goals, the Committee decided to maintain the target range for the federal funds rate at 3‑1/2 to 3‑3/4 percent," the statement said. The decision to leave rates unaltered was determined by a 10-2 vote. The two dissenters were Stephen I. Miran and Christopher J. Waller who preferred a .25 basis points cut,

In the end, U.S. stock indexes closed with minimal changes in a quiet session Wednesday, delivering a mixed performance as investors paused following the recent record-breaking rallies.

The tech-heavy NASDAQ Composite led the modest gains, rising 40.35 points, or 0.17 percent, to close at 23,857.45.

The Dow Jones Industrial Average also edged higher, adding 12.19 points for a gain of 0.02 percent, finishing the day at 49,015.60.

The broad S&P 500 index bucked the trend with a slight decline. It dipped 0.57 points, a negligible decrease of 0.01 percent, closing at 6,978.03. Despite the fractional loss, the index remains near its all-time high.

The subdued trading suggests a consolidative pause as the market digests its first-quarter surge. With major U.S. indices hovering at historic levels, the minor moves indicate a lack of significant new catalysts to drive decisive action in either direction. 

U.S.Dollar Strengthens Against Major Peers in Wednesday Trading

The U.S. dollar displayed broad strength in foreign exchange markets on Wednesday, rallying significantly against the euro and Swiss franc, while facing a notable setback against the Japanese yen, and Australian dollar.

The greenback's most dramatic gain came against the Swiss franc, with USD/CHF surging 1.22 percent to trade at 0.7700. It also posted strong gains against the euro, as the EUR/USD pair fell 0.87 percent to 1.1934. The British pound also softened against the dollar, with GBP/USD declining 0.36 percent to 1.3792.

However, the dollar's momentum was checked by a sharp move from the Japanese yen. The USD/JPY pair retreated by 0.90 percent to 153.54, marking one of the day's most significant shifts.

The commodity-linked currencies showed resilience. The Australian dollar edged higher, with AUD/USD gaining 0.06 percent to 0.7014. The New Zealand dollar was nearly flat, with NZD/USD dipping a marginal 0.06 percent to 0.6040. The Canadian dollar held its ground, as USD/CAD saw a minor decrease of 0.04 percent, bringing the pair to 1.3564.

The day's action reflected a mixed but overall firm tone for the dollar, driven by shifting interest rate expectations and relative economic outlooks. The pronounced weakness of the euro and Swiss franc against the dollar contrasted sharply with the yen's recovery, underscoring the divergent monetary policy trajectories anticipated for the Federal Reserve, the European Central Bank, and the Bank of Japan.

Global Markets Mixed on Wednesday as Asia Rallies While Europe Retreats

Global equity markets delivered a split performance on Wednesday, with major Asia-Pacific indices surging on renewed optimism while European bourses slumped amid lingering economic concerns.

London's FTSE 100 closed at 10,154.43, shedding 53.37 points or 0.52 percent. 

In contrast, the Canadian equity market saw clearer positive momentum. The S&P/TSX Composite Index gained 79.67 points, or 0.24 percent, ending the session at 33,176.07.

In Europe, the selling pressure was broad-based. Germany's DAX declined 0.29 percent to 24,822.79, and France's CAC 40 saw a more significant drop of 1.06 percent, finishing at 8,066.68.

The pan-European EURO STOXX 50 retreated by 1.02 percent to 5,933.20.

Other European indices followed suit. The Euronext 100 fell 0.97 percent, Belgium's BEL 20 edged down 0.30 percent.

The picture was strikingly different across Asia. Hong Kong's Hang Seng Index was a standout performer, jumping 699.96 points, a gain of 2.58 percent, to close at 27,826.91. South Korea's KOSPI rose 1.69 percent, and Taiwan's TWSE climbed 1.50 percent. Japan's Nikkei 225 eked out a small gain of 0.05 percent to close at a record 53,358.71, while mainland China's SSE Composite Index added 0.27 percent.

India's S&P BSE Sensex continued its strong run, advancing 0.60 percent to 82,344.68. In South Africa, the Top 40 USD Net TRI Index gained 1.95 percent.

However, the session was not positive for all Asian markets. Indonesia's IDX Composite experienced a severe correction, plummeting 659.67 points or 7.35 percent to 8,320.56.

Singapore's STI fell 0.28 percent, and Malaysia's FTSE Bursa Malaysia KLCI declined 0.83 percent.

In the Asia-Pacific region, Australia's S&P/ASX 200 was nearly flat, down just 0.09 percent, while the broader All Ordinaries index slipped 0.19 percent.

New Zealand's S&P/NZX 50 decreased by 0.73 percent.

In the Middle East, the TA-125 in Israel dropped 0.87 percent.

In Egypt the EGX 30 was a relative outlier, dipping a marginal 0.10 percent.

The divergent performances highlight the varying regional drivers influencing investor sentiment, from policy stimulus hopes in Greater China to recessionary worries in Europe.

(This report incorporates quotes retrieved with the assistance of artificial intelligence).

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