05:04 PM EDT, 05/07/2025 (MT Newswires) -- US benchmark equity indexes finished higher on Wednesday as markets evaluated the Federal Reserve's acknowledgement that upside risks to inflation and unemployment were growing.

The Dow Jones Industrial Average rose 0.7% to 41,114, while the S&P 500 edged up 0.4% to 5,631.3 The Nasdaq Composite was up 0.3% at 17,738.2. Most sectors were in the green, led by consumer discretionary and technology.

The Federal Open Market Committee kept interest rates in the range of 4.25% to 4.50% for for a third straight meeting. Policymakers cut rates by 50 basis points in September and by 25 basis points each in November and December.

"Uncertainty about the economic outlook has increased further," the FOMC said Wednesday following its two-day meeting. "The committee is attentive to the risks to both sides of its dual mandate and judges that the risks of higher unemployment and higher inflation have risen."

President Donald Trump has repeatedly called on the Fed to reduce interest rates.

"The likely and appropriate response from the Fed to the heightened risks to both sides of its dual mandate is that the central bank will be reactive, rather than preemptive," Oxford Economics Chief US Economist Ryan Sweet said in remarks e-mailed to MT Newswires. "The Fed is unlikely to cut interest rates earlier than our forecast of December, unless there are definitive signs that the labor market is deteriorating."

Last month, Trump declared a 90-day pause on certain tariffs for non-retaliating countries. Washington and China have been in a deadlock over tariffs, though officials from both sides are due to meet in Switzerland this weekend to discuss economic and trade matters.

On Thursday, the European Union is expected to outline a list of more than $100 billion worth of US products it could hit with tariffs if trade discussions with the Trump administration fail, The Wall Street Journal reported, citing sources.

US Treasury yields were mixed, with the 10-year rate falling three basis points to 4.28% while the two-year rate was steady at 3.79%.

In company news, Walt Disney ( DIS ) shares jumped nearly 11%, the top gainer on the Dow and among the best on the S&P 500. The media and entertainment giant raised its full-year earnings outlook after reporting a surprise increase in profit for its fiscal second quarter.

Rockwell Automation ( ROK ) was the second-best performer on the S&P 500, up 12%, after the industrial automation company raised its full-year earnings guidance as its fiscal second-quarter results came in above Wall Street projections.

Marvell Technology ( MRVL ) shares sank 8%. The company late Tuesday narrowed its fiscal first-quarter revenue outlook range and said it was postponing its investor day scheduled for June 10 to a future date in 2026, citing a "dynamic macroeconomic environment."

Nvidia ( NVDA ) shares gained 3.1%. Trump said Wednesday he will soon make an announcement on whether the US microchip export restrictions to some Gulf countries will be eased, Reuters reported.

West Texas Intermediate crude oil was down 1.9% at $57.98 a barrel.

Commercial crude stockpiles in the US dropped more than expected last week as distillate fuel inventories posted a draw, government data showed Wednesday.

Eight members of the Organization of the Petroleum Exporting Countries and its allies on Saturday announced plans to hike production in June for a second consecutive month.

Gold was down 1.4% at $3,376.50 per troy ounce, while silver lost 2.7% to $32.48 per ounce.