U.S. stocks were slightly higher in choppy trade Wednesday, after the Federal Reserve held rates steady, as was widely expected, as investors awaited comments from Chair Jerome Powell for signs of when the central bank may reduce borrowing costs.

The central bank said "the unemployment rate remains low, and labor market conditions remain solid. Inflation remains somewhat elevated," in a split decision that saw two governors dissent and gave little insight into when rates will be lowered.

Stocks were modestly higher before the Fed statement as investors assessed the first reading of second-quarter economic growth, which was stronger than expected, but underlying details indicated an economy that was likely losing strength.

"The Fed probably wishes it waited until next Wednesday to have this meeting so they could have the employment numbers to look at," said Brian Jacobsen, chief economist at Annex Wealth Management, Menomonee Falls, Wisconsin

"It’s setting up to be an awful lot like last year when, in hindsight, they wished they’d have cut in July and so they did a catch-up cut in September."

The Dow Jones Industrial Average rose 14.93 points, or 0.03%, to 44,647.92, the S&P 500 gained 13.50 points, or 0.21%, to 6,384.14 and the Nasdaq Composite gained 85.95 points, or 0.41%, to 21,184.57.

With the Fed widely expected to "hold" rate cuts at the end of its meeting, analysts are eager for Powell's comments for any hints on future policy direction, especially as the central bank navigates political pressure and assesses the effects of tariffs on inflation.

Traders see about a 68% chance of a September rate cut, according to the LSEG data.

Earlier data in the ADP employment report showed private payrolls grew by 104,000 in July, topping forecasts of 75,000, the latest in a string of labor market data this week before Friday's government payrolls report.

Investors were also awaiting earnings from several megacap companies this week, with Microsoft and Meta Platforms scheduled to report their results after the market close, while Amazon and Apple are due to report on Thursday.