A choppy day of trading on Wall Street ended with stocks modestly lower Wednesday after the Federal Reserve said it is leaving itsThe Standard & Poor’s 500 index ended down 0.1% after wavering between small gains and losses. Gains in communication services, energy and financial companies outweighed declines in technology and healthcare stocks. Bond yields also fell broadly, pulling back after an early rally.
“With no meaningful change to monetary policy or communication, this meeting was simply a message to market participants to sit back and observe as the economic recovery continues to unfold,” said Charlie Ripley, senior investment strategist for Allianz Investment Management.The S&P 500 slipped 3.54 points to 4,183.18. It had reached an all-time high Monday. The Dow Jones industrial average fell 164.55 points, or 0.5%, to 33,820.38. The tech-heavy Nasdaq fell 39.19 points, or 0.
In its remarks, the Fed noted that the economy and job market have “strengthened.” And, although it acknowledged that inflation has risen, it said it sees the increase as transitory. Fed officials have said they want to see inflation exceed their 2% annual target before they’d consider raising rates.