U.S. markets closed mixed on Wednesday as investors assessed the FOMC decision and fourth-quarter earnings. The Dow and the Nasdaq Composite ended in positive territory, while the S&P 500 finished in negative territory.
How Did the Benchmarks Perform?
The Dow Jones Industrial Average (DJI) rose 0.02%, or 12.19 points, to close at 49,015.60. Fourteen components of the 30-stock index ended in positive territory, while 16 ended in negative territory.
The tech-heavy Nasdaq Composite advanced 0.2% to close at 23,857.45.
The S&P 500 lost 0.01%, or 0.57 points, to end at 6,978.03. Out of 11 broad sectors of the broad-market index, seven ended in negative territory while four ended in positive territory. The Real Estate Select Sector SPDR (XLRE), the Health Select Sector SPDR (XLV) and the Consumer Staples Select Sector SPDR (XLP) fell 0.9%, 0.8% and 0.8%, respectively, while the Energy Select Sector SPDR (XLE) rose 0.7%.
The fear gauge, the CBOE Volatility Index (VIX), increased by 1.8% to 16.65. A total of 19.03 billion shares were traded on Wednesday, higher than the last 20-session average of 18.29 billion. The S&P 500 posted 38 new 52-week highs and 14 new lows, and the Nasdaq Composite recorded 102 new highs and 125 new lows.
Fed Holds Rates Steady
The Federal Reserve kept interest rates unchanged on Wednesday, keeping the federal funds rate at 3.5% to 3.75%. The Federal Reserve keeps its monetary policy tight because inflation rates continue to exceed their established target level. The Fed stated that its upcoming policy choices would rely on upcoming economic and financial information, which includes employment statistics, inflation rates and worldwide market changes.
Q4 Earnings Results
AT&T Inc. (T) reported fourth-quarter 2025 adjusted earnings of $0.52 per share, beating the Zacks Consensus Estimate of $0.46 per share. Revenues of $33.47 billion outpaced the Zacks Consensus Estimate by 2.24%.
GE Vernova Inc. (GEV) reported fourth-quarter 2025 adjusted earnings of $13.39 per share, beating the Zacks Consensus Estimate of $3.05 per share. Revenues of $10.96 billion surpassed the Zacks Consensus Estimate by 8.73%.
The Progressive Corporation (PGR) reported fourth-quarter 2025 adjusted earnings of $4.67 per share, beating the Zacks Consensus Estimate of $4.44. Revenues of $22.49 billion surpassed the Zacks Consensus Estimate by 2.50%.
Consequently, shares of AT&T, GE Vernova and The Progressive rose 4.7%, 2.7% and 2.2%, respectively. AT&T carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
Economic Data
U.S. commercial crude oil inventories (excluding those in the Strategic Petroleum Reserve) decreased by 2.3 million barrels for the week ended Jan. 16.
Beyond Nvidia: AI's Second Wave Is Here
The AI revolution has already minted millionaires. But the stocks everyone knows about aren't likely to keep delivering the biggest profits. Little-known AI firms tackling the world's biggest problems may be more lucrative in the coming months and years.
SeeAT&T Inc. (T) : Free Stock Analysis Report
The Progressive Corporation (PGR) : Free Stock Analysis Report
GE Vernova Inc. (GEV) : Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
