Wall St fades after Fed decision
U.S. stocks trimmed gains on Wednesday, with the Dow turning negative after the Federal Reserve reiterated its intention to keep interest rates low for the foreseeable future to ensure a sustainable economic recovery.
The Fed voted unanimously to keep benchmark borrowing costs in a range pf zero to 0.25 percent, which represents historic lows. The central bank's policy-making committee also reminded markets it will let most of the special liquidity facilities, which have helped bolster the U.S. banking system, expire by early next year.
I saw nothing new out of the Fed today that led me to believe it was going to change any scenario that I came into the day with, said Stephen Massocca, managing director of Wedbush Morgan in San Francisco.
It's a neutral for stocks.
Banking stocks, which had initially climbed after sources said global banking regulators will give banks a grace period before enforcing more stringent capital rules, also slipped after the Fed statement.
The S&P Financial Index <.GSPF> rose 0.5 percent, pulling back from gains of more than 1 percent.
The Dow Jones industrial average <.DJI> shed 8.54 points, or 0.08 percent, to 10,443.46. The Standard & Poor's 500 Index <.SPX> added 1.49 points, or 0.13 percent, to 1,109.42. The Nasdaq Composite Index <.IXIC> gained 5.37 points, or 0.24 percent, to 2,206.42
(Reporting by Chuck Mikolajczak; Additional reporting by Caroline Valetkevitch; Editing by Jan Paschal)
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