U.S. stocks rise, bond yields fall, oil hits 2016 high after Fed statement

Wed Apr 27, 2016 5:24pm EDT
 
Email This Article |
Share This Article
  • Facebook
  • LinkedIn
  • Twitter
| Print This Article | Single Page
[-] Text [+]

By Dion Rabouin

NEW YORK (Reuters) - Wall Street stocks edged up, U.S Treasury debt yields fell, and oil prices rose to the highest level of the year on Wednesday after the Federal Reserve signaled it was in no hurry to change policy.

The Fed's policy interest rate target was left unchanged at 0.25 percent to 0.5 percent as expected, and the U.S. central bank expressed confidence in the U.S. economic outlook, leaving the door open to an interest rate rise in June, but gave no indication it felt the need to hike.

The Fed said the labor market had improved further despite slow economic growth, and added that it was keeping a close eye on inflation, while removing references to worries about the global economy from its statement.

The S&P 500 index and Dow Jones Industrial Average ended higher for the day after the Fed statement, but the Nasdaq fell on disappointing earnings from Apple and Twitter late Tuesday, and the index has lost nearly 5.0 percent in the past week.

"The big takeaway here is they (the Fed) continued to be positive on the domestic economy," said John Bailer, senior portfolio manager at The Boston Company Asset Management. "They have taken out some of the risk on the global economy."

The Dow Jones industrial average rose 51.23 points, or 0.28 percent, to 18,041.55, the S&P 500 gained 3.45 points, or 0.16 percent, to 2,095.15 and the Nasdaq Composite dropped 25.14 points, or 0.51 percent, to 4,863.14.

Apple shares closed down 6.3 percent after the company reported its first drop in iPhone sales and its first decline in revenue in more than a decade. Twitter tumbled more than 16 percent after quarterly revenue lagged expectations.

The Nasdaq's information technology sector fell 1.4 percent, with Facebook and Alphabet also lower.   Continued...

 
Traders work on the floor of the New York Stock Exchange (NYSE) in lower Manhattan in, New York, U.S., April 20, 2016. REUTERS/Brendan McDermid