01:31 PM EDT, 05/07/2025 (MT Newswires) -- US equity indexes traded mixed after midday Wednesday, ahead of the Federal Reserve's policy decision and potentially the most "substantive" high-level trade talks with China over the weekend.

The S&P 500 rose 0.4% to 5,629.6, and the Dow Jones Industrial Average climbed 0.9% to 41,198.4. The Nasdaq Composite was 0.1% lower at 17,674.1.

All sectors except communication services advanced intraday. Consumer discretionary and financials led the gainers.

The Fed's monetary policy decision is due at 2 pm ET, and Chair Jerome Powell will hold a press briefing at 2:30 pm ET. Currently, the CME's FedWatch tool shows a 98% probability that the Fed will maintain the target range for its federal funds rate at 4.25% to 4.50%.

Given that there will not be an updated Summary of Economic Projections, market participants will parse the Fed statement and listen to the press conference for any indications as to the direction of monetary policy and the timing of potential rate cuts in the future, according to a note from Stifel.

"While anticipating no change in today's announcement, investors continue to expect at least three rate cuts by year-end," Stifel Chief Economist Lindsey Piegza said.

The US and China will begin talks to de-escalate the tariff standoff this week, said a note from Deutsche Bank. The meeting will be held in Switzerland on Saturday and Sunday, led by Treasury Secretary Bessent and Trade Representative Jamieson Greer from the US and Vice Premier Lifeng from China.

"This would mark the first substantive talks between the world's two largest economies since the prohibitive tariffs were introduced a month ago," Jim Reid, head of global fundamental credit strategy at Deutsche Bank, said in the note.

The talks would focus on de-escalation rather than a big trade deal, Bessent signaled Tuesday night and said "we've got to de-escalate before we move forward," as per the note. China's commerce ministry, on its part, called on the US to "show sincerity" in forthcoming discussions.

Gold futures fell 0.9% to $3,393.50 per ounce.

US Treasury yields traded mixed intraday, with the 10-year rate down 3.1 basis points to 4.29% while the two-year yield rose 1.4 basis points to 3.80%.

In company news, Walt Disney ( DIS ) reported an increase in fiscal Q2 adjusted earnings and lifted its full-year earnings growth outlook, buoyed by its entertainment and experiences businesses. Shares surged nearly 11% intraday, the top performer on the Dow.

Apple ( AAPL ) is planning to restructure the Safari web browser on its devices to focus on artificial intelligence-run search engines, Bloomberg reported Wednesday, citing a company executive's testimony in a government lawsuit against Alphabet (GOOG, GOOGL). Shares of Apple ( AAPL ) retreated 1.6% intraday, the second-worst performer on the Dow, while Alphabet's shares sank 8.5% intraday, the steepest decliner on the Nasdaq and S&P 500.

Charles River Laboratories ( CRL ) said Wednesday it plans to undertake a strategic review of its business, including assessing alternatives to enhance long-term stockholder value. Its shares soared 17% intraday, the top gainer on the S&P 500.

In economic news, mortgage applications surged 11% in the week ended May 2 after a 4.2% decline in the prior week, driven by a drop in mortgage rates, according to Mortgage Bankers Association data released Wednesday.