U.S. stock markets closed higher on Wednesday following the Federal Reserve’s decision to maintain interest rates. Chair Jerome Powell acknowledged increasing economic uncertainty during a press conference following the meeting. The S&P 500 gained 0.43%, the Nasdaq Composite rose 0.27%, and the Dow Jones Industrial Average climbed 284 points, or 0.7%. Disney’s positive earnings report and surge in Disney+ subscribers helped buoy the Dow. However, concerns over rising inflation and an impending slowdown in economic growth persist. The Fed statement indicated a heightened awareness of potential risks to both job security and price stability. Chair Powell echoed this sentiment, noting “uncertainty about the economy is extremely elevated,” though he emphasized these risks have yet to materialize. The Fed’s cautious approach aligns with recent trade policies initiated by the Trump administration. Former President Trump reiterated his stance on Chinese imports, stating he won’t remove tariffs ahead of upcoming talks, while also warning that protectionist measures could further slow economic growth, fuel inflation, and potentially lead to increased unemployment. Meanwhile, reports indicating potential relaxation of restrictions on AI chip exports from Biden-era regulations boosted shares of Nvidia, impacting the Nasdaq. Apple and Alphabet’s performance, however, weighed down the Nasdaq with Alphabet experiencing a significant decline following a report suggesting that Apple might end its default search engine partnership with Google in Safari, opting instead for an AI-powered solution.