New York, New York — Stock futures showed little movement Wednesday evening after the Federal Reserve opted to keep interest rates unchanged. This decision came amid ongoing concerns regarding rising inflation and increasing unemployment risks.

Futures linked to the S&P 500 edged down 0.1%, while those for the Dow Jones Industrial Average dropped by 55 points, reflecting a similar decline. Nasdaq-100 futures also registered a slight decrease, signaling a cautious sentiment among investors.

The Federal Reserve maintained its benchmark overnight borrowing rate at between 4.25% and 4.5%, a continuation of the rate established during its December meeting. Analysts had anticipated this decision, as inflation trends and unemployment indicators have created a landscape of uncertainty for the economic outlook.

In a statement following the Fed meeting, officials acknowledged the dual challenges of rising unemployment and inflation. “Uncertainty about the economic outlook has increased further,” they noted, emphasizing the need to monitor evolving risks.

During a press conference, Federal Reserve Chair Jerome Powell dismissed the notion of implementing a “preemptive” rate cut in response to potential economic impacts from recent tariff policies. He pointed out that inflation remains above target levels, indicating a complex economic environment. “We actually don’t know what the right responses to the data will be until we see more data,” Powell remarked.

Chris Zaccarelli, Chief Investment Officer at Northlight Asset Management, commented on the Fed’s dilemma of balancing inflation concerns against signs of economic slowdown. “The Federal Reserve is in a bind with rising unemployment pulling them in two opposite directions,” he stated. He warned that market fears of a recession could intensify, especially if trade agreements are not reached before tariff pauses expire.

Following the Fed’s announcement, the S&P 500 experienced fluctuations but ultimately closed 0.43% higher. Gains were buoyed by a significant rise in Nvidia’s stock, which surged more than 3% after reports that the Trump administration may lift restrictions on semiconductor exports. The Nasdaq Composite also saw a 0.27% uptick, while the Dow Jones rose by 0.7%.

Looking ahead, investors are poised for several economic indicators scheduled for release on Thursday. Weekly jobless claims data will be available prior to the market opening at 8:30 a.m. ET, while the New York Fed’s Survey of Consumer Expectations is set for later in the day.

As earnings season continues, several significant corporations are preparing to report their financial results. ConocoPhillips and Warner Bros. Discovery are scheduled to share their earnings before the market opens, with Paramount Global and other firms, including Expedia, set to report after market hours.

In after-hours trading, shares of AppLovin soared over 13% following a positive earnings report that exceeded analysts’ expectations, coupled with news of its plan to divest its mobile gaming division. In contrast, Arm Holdings saw its shares decline by more than 11% after issuing a disappointing forecast, reflecting the market’s focus on earnings amidst broader economic concerns.