The US markets ended mostly in red on Wednesday after the Federal Reserve announced its widely expected decision to leave interest rates unchanged in a divided vote. The Fed has maintained the target range for the federal funds rate at 4.25 to 4.50 percent, in support of its dual goals of maximum employment and inflation at the rate of 2 percent over the longer run. Meanwhile, the decision to leave rates unchanged was not unanimous as Fed Governors Michelle Bowman and Christopher Waller preferred to lower rates by a quarter percentage point. However, downside remained capped markets took support of report released by payroll processor ADP showing private sector employment in the U.S. increased by more than expected in the month of July. The report said private sector employment jumped by 104,000 jobs in July after slipping by a revised 23,000 jobs in June. Meanwhile, the street had expected private sector employment to climb by 78,000 jobs compared to the dip of 33,000 jobs originally reported for the previous month.
Moreover, Commerce Department also released a report showing the U.S. economy rebounded by more than expected in the second quarter of 2025. The report said real gross domestic product surged by 3.0 percent in the second quarter after falling by 0.5 percent in the first quarter. Street had expected GDP to jump by 2.5 percent.
Dow Jones Industrial fell 171.71 points or 0.38 percent to 44,461.28 and S&P 500 edged down 7.96 points or 0.12 percent to 6,362.90, while Nasdaq rose 31.38 points or 0.15 percent to 21,129.67.
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