US benchmark equity indexes closed mixed on Wednesday after a Federal Reserve official highlighted policy challenges due to the uncertain economic outlook.

The Nasdaq gained 0.7% to 19,146.81, the S&P 500 rose 0.1% to 5,892.58, and the Dow Jones Industrial Average dropped 0.2% to 42,051.06. Among sectors, communication services posted the biggest gain, and health care paced the decliners.

US Treasury yields were higher with the 10-year rate increasing 6.5 basis points to 4.5% and the two-year rate gaining 4.8 basis points to 4.1%.

June West Texas Intermediate crude oil decreased 1.3% to $2.87 a barrel on Wednesday.

In economic news, OPEC maintained its global oil demand projections for 2025 and 2026 but reduced its world and US economic growth forecasts for this year.

"Trade-related uncertainties have continued to weigh on the outlook for the US economy, particularly through their impact on consumer confidence and inflationary pressures," the group said. "While no definitive resolution to the ongoing trade disputes has been reached, the overall trajectory continues to point toward gradual de-escalation, as seen with China and the UK."

Fed Vice Chair Philip Jefferson said monetary policymakers are facing "a challenge" due to an uncertain economic outlook.

There is "much uncertainty" around the future trajectory of inflation, Jefferson said. "If the increases in tariffs announced so far are sustained, they are likely to interrupt progress on disinflation and generate at least a temporary rise in inflation."

Mortgage applications in the US edged higher last week as 30-year fixed interest rates steadied, the Mortgage Bankers Association said.

In company news, Super Micro Computer (SMCI) shares surged 16%, the biggest gain on the S&P. The artificial intelligence server maker and Saudi Arabian data center company DataVolt signed a multiyear partnership deal valued at $20 billion.

Enphase Energy (ENPH) shares rose 5.8% even as RBC Capital Markets cut its price target on the stock to $50 from $54.

Advanced Micro Devices (AMD) rose 4.7% after the chipmaker announced a new $6 billion share repurchase program.

Moderna (MRNA) shares fell 5.8%. Deutsche Bank cuts its price target on the stock to $28 from $35.

Gold decreased 2% to $3,181.90 per troy ounce, while silver was down 2.5% to $32.26 per troy ounce.