Stocks closed slightly higher on Wednesday after the Federal Reserve indicated it will likely not raise rates in 2020, removing the fear among investors that it would repeat a mistake it made last year by tightening monetary policy prematurely and knocking the stock market.
The Dow Jones Industrials ended the day positive by 29.58 points to finish Wednesday at 27,911.30,
The S&P 500 gained 9.11 points to 3,141.63
The NASDAQ gained 17.53 points to 8,633.72
United Technologies and Disney lifted the Dow, rising at least 1% each. Apple also contributed to the gains, gaining 0.9%. Home Depot was the biggest Dow loser, falling 1.8% after issuing a disappointing sales-growth outlook.
Tech was the best-performing S&P 500 sector, rising 0.7%, along with materials and industrials.
The Fed kept interest rates unchanged on Wednesday, following three decreases in a row. The central bank also indicated it does not expect any policy changes through at least 2020.
Fed Chair Jerome Powell said in a news conference the central bank would have to see a persistent rise in inflation before hiking rates once again
Prices for the 10-Year U.S. Treasury enjoyed gains, lowering yields to 1.80% from Tuesday’s 1.84%. Treasury prices and yields move in opposite directions.
Oil prices dropped 40 cents to $58.84 U.S. a barrel.
Gold prices improved $11.50 at $1,479.60 U.S. an ounce.
