04:52 PM EST, 01/29/2025 (MT Newswires) -- US benchmark equity indexes closed lower Wednesday as the Federal Reserve held its benchmark lending rate steady and said inflation remained "somewhat elevated."

The S&P 500 and Nasdaq Composite dropped 0.5% each to 6,039.3 and 19,632.3, respectively. The Dow Jones Industrial Average lost 0.3% to 44,713.5. Real estate saw the steepest decline among sectors, while communication services and consumer staples led the gainers.

The Federal Open Market Committee kept interest rates in the range of 4.25% to 4.50%, in line with Wall Street's expectations, following three consecutive cuts. The FOMC reiterated that inflation was "somewhat elevated," and dropped a reference from its December statement that inflation had made progress toward policymakers' 2% target.

"The unemployment rate has stabilized at a low level in recent months, and labor market conditions remain solid," the FOMC said Wednesday following its two-day meeting.

Policymakers "do not need to be in a hurry to adjust (their) policy stance," Fed Chair Jerome Powell said in a press conference following the FOMC meeting.

The US 10-year yield fell 1.5 basis points to 4.53%, while the two-year rate rose 1.7 basis points to 4.22%.

In company news, officials in the Trump administration are considering additional curbs on the sale of Nvidia ( NVDA ) chips to China, Bloomberg News reported, citing unnamed sources. The chip-making giant's shares fell 4.1%, the steepest decline on the Dow and the Nasdaq.

Danaher ( DHR ) reported fourth-quarter earnings that fell short of market estimates, while the medical technology company expects its adjusted core revenue to decline in the ongoing three-month period. It shares declined 9.7%, the second-worst performer on the S&P 500.

Starbucks ( SBUX ) was the top gainer on the Nasdaq and the second-best on the S&P 500, up 8.1%. Late Tuesday, the coffee giant's fiscal first-quarter results topped Wall Street expectations as higher prices helped cushion a blow from weak volume.

T-Mobile US ( TMUS ) reported better-than-expected fourth-quarter results Wednesday aided by its postpaid phone subscriber additions that came in ahead of the Street's projections. The wireless company's shares jumped 6.3%, the second-best performer on the Nasdaq and among the best on the S&P 500.

West Texas Intermediate crude oil decreased 1.1% to $72.95 a barrel. Commercial crude stockpiles in the US increased more than projected last week, government data showed.

In economic news, mortgage applications in the US declined last week mainly due to weak refinancing activity across conventional and government loans, the Mortgage Bankers Association said.

Gold rose 0.1% to $2,771.30 per troy ounce, while silver gained 2.2% to $31.57 per ounce.