The Fed said after its latest policy meeting ended on Wednesday that the economy has been strengthening despite a rise in coronavirus infections, and thatsaid it was not yet time to think about raising interest rates, and that while the Fed has begun discussing plans to taper its bond purchases, the exact timing will depend on incoming data.
The Dow Jones Industrial Average fell 0.36%, the S&P 500 was flat, while the tech-focused Nasdaq Composite rebounded 0.7% afterAny sign the Fed may tighten policy sooner than expected could unnerve markets, since its loose policy has flushed the market with cash and pushed Wall Street to record highs. Also, some investors worry the fast-spreading Delta coronavirus variant may scupper economic growth, and hope the Fed will stand pat for now.
The Fed meeting aside, investor risk appetite also got a boost from signs that China's stock market might finally be steadying, after being hammered this week by concerns of a widening regulatory crackdown.