04:36 PM EDT, 06/18/2025 (MT Newswires) -- US equities closed mixed Wednesday as the Federal Reserve kept its benchmark rate unchanged and stuck to its policy rate outlook for 2025.

The Nasdaq Composite was up 0.1% at 19,546.3, while the Dow Jones Industrial Average fell 0.1% to 42,171.7. The S&P 500 was little changed at 5,980.9. Most sectors ended in the red, led by energy, while technology saw the biggest gain.

US markets will be closed on Thursday for the Juneteenth holiday

The Federal Open Market Committee left interest rates in the range of 4.25% to 4.50%, in line with Wall Street's expectations. Policymakers lowered rates by 50 basis points in September and by 25 basis points each in November and December.

The FOMC's Summary of Economic Projections showed that members reiterated their rate outlook for this year, while lowering economic growth expectations and raising inflation forecasts.

"The SEP highlights what the Fed will be focused on, as inflation this year will be noticeably further away from its objective than the labor market will be," Oxford Economics Chief US Economist Ryan Sweet said in a remarks e-mailed to MT Newswires. "Risks are shifting toward the next rate cut being larger, rather than sooner than we anticipate."

US Treasury yields were mixed, with the 10-year rate little changed at 4.39% and the two-year rate dropping 1.2 basis points to 3.95%.

West Texas Intermediate crude oil was down 0.1% in at $74.79 a barrel as investors kept an eye on developments surrounding the Middle East conflict.

Iran wants to negotiate with the US over the former's nuclear program, CNBC reported, citing citing US President Donald Trump. Iran's Supreme Leader Ayatollah Ali Khamenei on Wednesday reportedly warned the US of "irreparable damage" if it joined Israel's strikes.

The Organization of the Petroleum Exporting Countries' spare capacity is unlikely to help the market if supply is disrupted by a potential shutdown of the Strait of Hormuz, ING said in a report published Wednesday.

"Almost a third of global seaborne oil trade moves through this chokepoint," the firm wrote, referring to the strait. "A significant disruption to these flows would be enough to push prices to $120 (per barrel)."

Official data, meanwhile, showed commercial crude stockpiles in the US dropped more than projected last week even as inventories of propane and distillate fuel grew.

In economic news, US housing starts fell more than projected last month, driven by a sharp slump in multi-family projects, government data showed.

Homebuilding is likely to remain subdued in the coming months amid mortgage rates close to 7% and an uncertain economic outlook due to trade tensions, TD Economics said.

Weekly applications for unemployment insurance in the US declined, while a four-week average of continuing claims remained at their highest level since November 2021, the Department of Labor said.

In company news, Korn Ferry ( KFY ) shares jumped 6.5% as its fourth-quarter results surpassed analysts' expectations, while the consulting firm forecast first-quarter earnings growth on an annual basis at the mid-point of its guidance range.

Gold was down 0.7% at $3,383.30 per troy ounce, while silver fell 1.3% to $36.67 per ounce.