US stocks hold near their all-time high while the dollar’s value stabilizes

NEW YORK (AP) — Few ripples washed through Wall Street Wednesday after the Federal Reserve decided to hold its main interest rate steady, just like investors expected.

The U.S. stock and bond markets each remained at a virtual standstill, while the U.S. dollar stabilized following its sharp recent slide. Some of the strongest action remained in the gold market, where the metal’s price jumped to another record.

The S&P 500 was nearly unchanged and inched down by less than 0.1% from its all-time high. The Dow Jones Industrial Average added 12 points, or less than 0.1%, and the Nasdaq composite rose 0.2%.

Seagate Technology jumped 19.1% for the biggest gain in the S&P 500 after the seller of hard drives and other data-storage products reported a bigger profit for the latest quarter than analysts expected. CEO Dave Mosley cited demand driven by artificial-intelligence applications, among other things.

Nvidia, the stock that’s become the poster child of the AI boom, climbed 1.6% and was the strongest single force lifting the S&P 500. It also benefited from an encouraging report from ASML, whose machinery helps make chips.

The Dutch company gave a forecast for revenue in 2026 that topped analysts’ expectations, and CEO Christophe Fouquet said customers have been notably more encouraged about “the sustainability” of AI demand. That helped allay concerns that the AI frenzy has gone overboard and created a potential bubble that may burst.

On the losing end of Wall Street was Amphenol, whose stock tumbled 12.2% even though it reported a stronger profit than analysts had forecast. Expectations were high for the maker of fiber-optic connectors and other high-tech equipment after its stock came into the day with a surge of 23% for the young year so far.

Companies across the market are under pressure to deliver solid growth in profits following record-setting runs for their stock prices. Stock prices tend to follow the path of corporate profits over the long term, and earnings need to rise to quiet criticism that stock prices have grown too expensive.

Apple slipped 0.7% ahead of its profit report coming on Thursday. Because of its immense size, it was the single heaviest weight on the S&P 500.

All told, the S&P 500 edged down by 0.57 to 6,978.03 points. The Dow Jones Industrial Average rose 12.19 to 49,015.60, and the Nasdaq composite rose 40.35 to 23,857.45.

In the foreign-exchange market, the U.S. dollar stabilized as Treasury Secretary Scott Bessent said in an interview on CNBC that the U.S. government is not intervening in the currency market and continues to want a “strong dollar.”

The dollar climbed against the euro, British pound and other rivals, a day after an index measuring the U.S. dollar’s value against several of its peers dropped to its weakest level since early 2022. It also climbed against the Japanese yen, which had jumped earlier in the week with rumors that U.S. and Japanese officials may intervene in the market to prop up the yen’s value.

The dollar has been generally weakening since President Donald Trump entered the White House last year, and its descent accelerated after Trump threatened tariffs earlier this month against several European countries that he said opposed his taking control of Greenland.

Such threats, along with worries about risks like the U.S. government’s heavy debt, have periodically pushed global investors to step away from U.S. markets, a move that’s come to be called “Sell America.”

In the bond market, Treasury yields held relatively steady following the Fed’s widely expected move to hold its main interest rate steady.

The Fed cut rates several times last year in hopes of shoring up the job market, but inflation remains stubbornly above its 2% target. Lower interest rates could worsen inflation while giving the economy a boost. Lower rates could also further undercut the U.S. dollar’s value, which would help U.S. exporters. Trump has been pushing aggressively for lower rates.

The Fed’s chair, Jerome Powell, said that interest rates look to be “in a good place” at the moment, giving the central bank time to and wait and see how things progress. In the meantime, “the economy has once again surprised us with its strength,” he said.

The yield on the 10-year Treasury remained at 4.24%, where it was late Tuesday.

As global investors have stepped away from the U.S. dollar due to political instability and other worries, prices have surged for gold and other metals as investors searched for something safer to own. Gold’s price topped $5,000 per ounce this week for the first time, and it added another 4.3% to settle at $5,340.20.

In stock markets abroad, indexes sank in Europe following better performances in Asia.

South Korea’s Kospi rose 1.7% to another record, thanks in part to a 5.1% leap for chip company SK Hynix, while Hong Kong’s Hang Seng rallied 2.6%.

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AP Business Writers Matt Ott and Elaine Kurtenbach contributed.