Wall Street spikes after Fed keeps rates near zero, but major indices fail to eke out a win

4:05pm: Boeing a drag on the Dow after sixth-straight quarterly loss The Dow closed Wednesday down 165 points, 0.5%, at 33,820. The S&P 500 appeared set to reach a new record close, but slipped almost 4 points to 4,183 just under the wire. The Nasdaq slid 39 points, 0.3%, to 14,051. The Federal Reserve opted to hold interest rates at the current level near zero after concluding two days of meetings on Wednesday. In a statement, the Fed wrote that "indicators of economic activity and employment have strengthened," while its target for inflation is just over 2% in the short term to achieve an average of 2% over time.  The industrials were pulled down in part by The Boeing Company (NYSE:BA) which reported its sixth consecutive quarterly loss Wednesday morning. Shares of the airplane manufacturer fell nearly 3% to $235.41. 12:20pm: S&P 500 ever so slightly above water The Dow was down 123 points, 0.4%, at 33,862 by midday. The Nasdaq has seen major volatility, going from down to up to down again, landing 25 points lower, 0.2%, at 14,065. The S&P 500 gave back its early gains to settle in a point above the flatline at 4,188. "Markets are holding up ahead of the Fed decision and Apple earnings, although the Dow and Nasdaq 100 continue to trade modestly in the red," IG Chief Market Analyst Chris Beauchamp wrote. "...It is far from clear that the FOMC will provide that spark however, with most investors still expecting the Fed to remain silent over any change in policy until later in the year when, it is hoped, the picture of a strong recovery bolstered by stimulus plans will be more advanced."         Fed Chair Jerome Powell is scheduled to speak at 2:30pm ET, and economists expect he will defend the Fed's policy of letting inflation run hot in the short term, according to CNBC and others. 9:35am: Fed decision looms large The main indices on Wall Street have opened on a mixed footing on Wednesday as traders the latest decision on interest rates from the Federal Reserve. Shortly after the opening bell, the Dow Jones Industrial Average was down 0.36% at 33,863 while the Nasdaq dropped 0.12% to 14,072. The S&P 500 was the positive outlier, rising 0.04% to 4,188. Aside from fresh economic insight from the Fed, some traders may also be keeping their powder dry ahead of earnings from Apple and Facebook, which are due after the close. 7:50am: Wall Street set for mixed open Wall Street is set for a mixed opening on Wednesday as traders await results from tech giants Apple and Facebook due to report results after the closing bell. Microsoft and Google-owner Alphabet both beat forecasts on Tuesday but the former's results still seem to have been deemed not quite good enough. Ipek Ozkardeskaya, senior analyst at Swissquote said: "Beating analyst estimates hasn’t been enough to boost the share price of Microsoft yesterday, and it may not be enough to boost Facebook and Apple’s share prices after today’s earnings announcements. "There is clear consensus on the official consensus, and the real consensus for the tech stocks is a super-beat, and not just a slight beat, and even less an in-line number." Apple is expected to have weathered the pandemic pretty well as people work from home and it continued to launch new products. Revenues could rise by some 32% year on year in the second quarter with earnings up around 53% with some estimates as high as 68%. Facebook meanwhile is expected to report first-quarter revenues up 33% and earnings around 37% higher. There are also (unsubstantiated) rumours it may reveal it holds Bitcoin on its balance sheet. Also in the spotlight will be the latest US Federal Reserve decision, which expected to leave rates and bond-buying as it is. But the central bank's comments will be scrutinised for its current view on inflationary pressures and whether there are hints it might start to ease off on its monetary support. Joshua Mahoney at IG said: "Markets are waiting patiently for the latest update from the Federal Reserve today, although they could be disappointed. Despite a resurgence in jobs and inflation data, we are unlikely to see [Fed chair Jerome] Powell lay the groundwork for any tapering in asset purchases today. Instead, it seems likely that he will stress the need to see sustained above-target inflation and proof of economic strength before they decide to start to reposition towards a less accommodative future". Sophie Griffiths at Oanda said: "No change in policy is expected today, so the central focus will be on...Powell’s press conference. While the US vaccination programme continues at a rate of knots and data reveals an increasingly convincing economic recovery, it’s still early days for tapering talk. June’s meeting could be much more significant. The Fed has said it will want to see approximately around 75% of the population vaccinated in order to begin tapering discussions. We’re not there yet, but we could well be by June. "The Fed aside, investors will also be watching for comments regarding Biden’s tax-raising plans when he addresses Congress. Reports of the tax hike have sent stocks lower once before, and any sense that these plans are firming up could hit market sentiment and pull stocks further from all-time highs." The Dow Jones Industrial Average is expected to open around 30 points lower at 33,954. The S&P 500 is forecast to edge up 0.09% and the tech-heavy Nasdaq Composite is set to dip by a similar amount. Four things to watch for on Wednesday: Aside from Apple and Facebook, other firms in the earnings diary today include computer chip maker Qualcomm Inc (NASDAQ:QCOM), Canadian ecommerce group Shopify Inc (NYSE:SHOP) and aircraft manufacturer Boeing Co (NYSE:BA) Meme-inspired crypto Dogecoin is back in the news after another cryptic tweet from Tesla Inc (NASDAQ:TSLA) boss Elon Musk sent its value surging overnight Aside from the Fed’s meeting, US mortgage data and trade data may also draw some attention Politics could also draw attention as Joe Biden prepares to address the US Congress and lay out a massive US$1.8 trillion family spending package funded by tax rises on the rich