Stocks Drift After Fed Predicts 2 Rate Cuts

US stocks drifted Wednesday after the Federal Reserve indicated it may cut interest rates twice this year, though it's far from certain about that.

• The S&P 500 ended basically flat—it fell 1.85 points to 5,980.87.
• The Dow Jones Industrial Average dipped 44.14 points, or 0.1%, to 42,171.66.
• The Nasdaq composite added rose 25.18 points, or 0.1%, to 19,546.27.

Treasury yields also wavered but ultimately held relatively steady after Fed Chair Jerome Powell said the central bank is still waiting to see what the effects of tariffs will be on the economy before deciding its next moves on interest rates, the AP reports. The price of oil swung in its latest yo-yo moves amid fighting between Israel and Iran.

Fed Chair Jerome Powell stressed on Wednesday that all the uncertainty surrounding tariffs means the median forecast for two cuts to interest rates this year could end up being far from reality. "Right now it's just a forecast in a very foggy time," he said. Fed officials are waiting to see how big Trump's tariffs will ultimately be, what they will affect, and whether they will drive a one-time increase to inflation or something more lasting. There is also still deep uncertainty about how much tariffs will grind down on the economy's growth.

• "Because the economy is still solid, we can take the time to actually see what's going to happen," Powell said. "There's a range of possibilities on how large the inflation effects and the other effects are going to be. We'll make smarter and better decisions if we just wait a couple months or however long it takes to get a sense of really what is going to be the passthrough of inflation and what are going to be the effects on spending and hiring and all those things."

On Wall Street, some alternative-energy stocks rose to recover a portion of their sharp losses from the day before, when worries flared about Congress possibly phasing out tax credits for solar and green energy sources. Enphase Energy climbed 4.2% to trim its loss for the week to 20.6%. Nucor rose 3% after the steelmaker said it expects to report growth in profit for all three of its operating groups in the second quarter. It said it benefited from higher selling prices at its sheet and plate mills, among other things.

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