Fed rates unchanged: Here's how S&P 500, Wall Street, Nasdaq, Dow Jones reacted to Jerome Powell's announcement

The Federal Reserve kept its key interest rate unchanged for the fifth straight meeting.

The Federal Reserve kept its key interest rate unchanged for the fifth straight meeting. On Wednesday, the Jerome Powell-led department gave no signals for its plans to lower rates in September despite criticism from President Donald Trump. The Fed's benchmark short-term rate is now at 4.5% from 4.25% last month.

How did the stock market react after Fed's announcement?

Federal Reserve Chairman Jerome Powell listens as President Donald Trump visits the Federal Reserve (AP)

The S&P 500 edged up 0.2% on Wednesday after the Federal Reserve kept interest rates unchanged, as anticipated. The Nasdaq Composite rose 0.4%, while the Dow Jones Industrial Average added just 28 points, or 0.1%.

Chair Jerome Powell reiterated that any future rate cuts will be guided by economic data. The decision was not unanimous, with governors Michelle Bowman and Christopher Waller dissenting.

“We typically view Fed Chair Powell’s presser as a wild card with potentially higher drama today,” Wolfe Research’s Chris Senyek told CNBC, pointing to recent pro-cut comments from Waller and Bowman.

Meanwhile, a stronger-than-expected GDP report did little to distract Wall Street from Fed speculation and corporate earnings. The US economy expanded at a 3% annual rate in Q2, surpassing economists’ 2.3% forecast, according to the Commerce Department.

“Cutting through the noise of the swings in imports, the economy is still chugging along, but it is showing signs of sputtering,” said Brian Jacobsen, chief economist at Annex Wealth Management.

(With inputs from AP)