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US stocks mixed, treasuries drop after Fed keeps
rates pinned near zero
The Federal Reserve has maintained the pace of bond purchases as was widely expected
US stocks were mixed and Treasuries held modest losses after the Federal Reserve kept rates pinned near zero
and maintained the pace of bond purchases as was widely expected.
The Fed strengthened its view of the economy and said that recent increases in inflation looked “transitory,”
reassuring investors that the central bank is in no hurry to tap the brakes on growth. The dollar was lower, the 10-
year Treasury rate held near 1.65%, and gold was little changed.
“No news is good news as far as the market is concerned because it means the Fed will remain accommodative
for the near future,” said Ellen Hazen, portfolio manager and principal at F.L.Putnam Wealth Management. “This is
a goldilocks Fed. It is exactly what the equity markets are looking for.”
The Fed decision came as investors parsed the latest batch of corporate earnings reports. Alphabet Inc. rose
toward a record after its results showed a surge in ad sales. Microsoft Corp. was among the biggest drags,
dropping to a three-week low after the software maker failed to deliver the blockbuster results some analysts were
looking for. The S&P 500 was little changed while the Nasdaq 100 fell.
With stock valuations about 25% above their five-year average, investors have been searching for new catalysts to
sustain the bull market momentum.