Stocks mixed after Fed's decision, Disney jumps: Live Updates

Traders work on the floor of the New York Stock Exchange in New York City. (Reuters)

Stocks closed higher on Wednesday as investors eye positive trade news out of Washington and the Federal Reserve's decision to keep interest rates unchanged.

The Dow Jones Industrial Average climbed 284.97 points, or 0.7%, while the S&P 500 and Nasdaq Composite rose 0.43% and 0.27%, respectively.

The Federal Reserve on Wednesday announced that it will leave its benchmark interest rate unchanged as policymakers continue to monitor inflation and the labor market amid elevated levels of economic uncertainty.

The central bank's decision leaves the benchmark federal funds rate at a range of 4.25% to 4.5%.It comes after the Fed left rates at that level at its two previous meetings in January and March, which followed three consecutive rate cuts at its preceding meetings – which involved a 50-basis-point cut in September and a pair of 25-basis-point reductions in November and December.

Elsewhere, Treasury Secretary Scott Bessent confirmed he will sit down with Chinese officials to advance President Donald Trump's talks with China. The news broke on "The Ingraham Angle."

Stocks closed lower on Tuesday, with the Dow falling 389.83 points, or 0.95%, while the S&P 500 and Nasdaq Composite slid 0.77% and 0.87%, respectively.

Disney shares rallied after quarterly results and a surprise announcement of a new theme park which will be located in Abu Dhabi.

“This is a thrilling moment for our company as we announce plans to build an exciting Disney theme park resort in Abu Dhabi, whose culture is rich with an appreciation of the arts and creativity,” said Disney CEO Robert Iger.

Shares of the Mouse House were up by double-digits Wednesday but are down over 17% this year.

Profits rose 7% to $23.6 billion, while revenue rose 6% to nearly $9 billion, both exceeded Wall Street expectations.

The U.S. trade deficit grew to a record high in March after businesses stepped up their imports of goods in an effort to front-run tariffs.

The Commerce Department on Tuesday reported that the trade deficit increased 14% to a record $140.5 billion in March, rising from $123.2 billion in February.

Economists polled by LSEG had projected the trade deficit would be $137 billion in March.

Imports increased 4.4% to reach an all-time high of $419 billion in March, with goods imports rising 5.4% to a record $346.8 billion. Exports rose 0.2% to $278.5 billion, also record high, while exports of goods were up 0.7% to $183.2 billion.

President Donald Trump's tariffs, including the 145% levies imposed on goods imported from China as well as his "reciprocal" tariff plan that aims to address bilateral trade deficits, spurred a surge in imports as companies looked to bring in shipments ahead of tariffs taking effect.

This is an excerpt from an article by Fox Business’ Eric Revell. To read more, click here.

A logo of BMW is seen inside a car dealer in Nijmegen, Netherlands February 26, 2025. REUTERS/Piroschka van de Wouw

BMW expects that car tariffs imposed by President Donald Trump will have a “notable” impact on its second-quarter results, though the carmaker remained positive about trade negotiations with the U.S. 

BMW finance chief Walter Mertl told analysts during a call on Wednesday that the company was engaged in multi-level talks with U.S. policymakers. 

"We are noticing that things are moving, developing and being negotiated everywhere," Mertl said. "Accordingly, our reading, based on all the networks that we have at our disposal, is that we assume that something will change in July." 

BMW executives declined to estimate the impact that tariffs could have on its quarterly results, though said the company expected "some of the tariff increases to be temporary, with reductions from July 2025." 

CEO Oliver Zipse said that the company’s large footprint and deep roots in the U.S. market “will not be ignored” as the carmaker talks to all stakeholders. 

"Knowing that we are the largest exporter, we are convinced that this will play a role in some appropriate form in the negotiations in the coming weeks," Zipse said. 

BMW noted that its business performance in 2025 could change depending on whether tariffs increase or remain in place for longer than anticipated. 

Reuters contributed to this report.

A Boeing logo is seen at the 54th International Paris Airshow at Le Bourget Airport near Paris, France, June 18, 2023. REUTERS/Benoit Tessier/File Photo

The European Union is considering a tariff on Boeing jets as the 27-country bloc prepares countermeasures to President Donald Trump’s tariffs should trade talks in Washington fall apart, according to a report Wednesday.

The European Trade Commission is planning to include civilian aircraft on a list targeting roughly $100 billion in annual U.S. imports, the Financial Times reported, citing two people familiar with the matter.

The reported move comes after European Trade Commissioner Maros Sefcovic on Tuesday said the bloc won’t be pressured into accepting an unfair trade deal with the U.S., and that “all options remain on the table” as the EU prepares countermeasures to Trump’s tariffs before the president’s 90-day pause ends July 8.

Trump imposed 25% tariffs on European steel and aluminum and cars, along with reciprocal tariffs of 10% for nearly all other goods imported into the United States. Trump later initiated a 90-day pause on the tariffs.

Trump’s tariffs currently cover 70% of EU goods imported to the U.S., according to Sefcovic, and could jump to 97% as the U.S. investigates pharmaceuticals, semiconductors and other products.

Reuters contributed to this report.