Stock prices in the U.S. went up a little on Wednesday. This happened after the central bank decided not to change interest rates, which most people thought would happen. However, the bank also said there were increasing risks for the U.S. economy.

The S&P 500 went up by 0.4%. Before this, it had lost value for two days, which ended its nine-day period of going up. The Dow Jones Industrial Average also went up by 284 points, or 0.7%, and the Nasdaq composite increased by 0.3%.

Stock markets went up and down all day, and the Dow index even rose 400 points at one point. This happened because people hoped that the United States and China were starting to talk about a trade agreement. Such an agreement could help protect the world economy. The US and China, which are the two biggest economies, have been putting more and more taxes on each other's goods in a growing trade conflict. People worry that this could lead to a recession unless they allow trade to happen more easily.

Hopes for trade talks between the US and China this weekend in Switzerland increased after they were announced, but decreased after President Trump said he would not lower taxes on Chinese goods before talking. China wants the US to lower the taxes before they start talking.

The changing situation with tariffs has caused big ups and downs in the U.S. economy. For example, a lot of imports arrived quickly because people hoped to avoid paying the extra taxes. Even though the economy is changing and surveys show Americans are feeling less hopeful about the future, the Fed said it still believes the economy is strong right now.

Jerome Powell, the head of the Federal Reserve, said they can wait before changing interest rates, even though Trump wants faster cuts to help the economy.

Powell said, "We don't know a lot." So, like others in the financial world and around the world, the Federal Reserve is waiting to see what will happen with Trump's trade disagreements and if his taxes on imported goods, which were higher than expected, will be used as planned.

This is especially true because the trade conflict seems to be starting "a new period," Powell said. In this new period, the United States is having more talks about trade with other countries.

The Fed also said it knows that tariffs are making the economy riskier. This could make it harder to find jobs and cause prices to go up.

"If the big increases in taxes on imports continue, they will probably cause prices to rise, economic growth to slow down, and unemployment to go up," Powell said.

In a difficult situation called “stagflation,” the economy is slow and prices are still high. This is a problem for the central bank because it's hard to fix.

Meanwhile, large American companies are making bigger profits at the start of 2025 than experts predicted.

The Walt Disney Company's stock went up by 10.8% because their profits were much better than expected. They also said they expect higher profits in the future and got over a million new streaming customers.

Companies are also still warning that the uncertain economy is making it harder for them to know what their finances will be.

The company Marvell Technology, which makes computer chips, saw its stock price fall by 8% because it changed the date of its meeting with investors to a later time. It did this because the economy is uncertain.

Overall, the S&P 500 increased by 24.37 points, ending at 5,631.28. The Dow Jones Industrial Average also rose by 284.97 points, reaching 41,113.97. The Nasdaq composite went up by 48.50 points, finishing at 17,738.16.

After the Fed's announcement, interest rates on government bonds went down. For example, the rate on the 10-year bond dropped from 4.30% to 4.27%.

European markets generally fell, but Asian markets went up. Stock market indexes increased in Hong Kong (0.1%) and Shanghai (0.8%). This happened after China reduced interest rates and took other steps to support its economy and markets. These actions were necessary because the higher taxes on Chinese goods ordered by Trump were affecting the country's exports.