Dow closes at record after Fed keeps rates intact
Source: AP-Excite
By BERNARD CONDON
NEW YORK (AP) — The stock market got the reassurance it wanted from the Federal Reserve Wednesday.
The U.S. central bank signaled that it would keep its short-term interest rate near zero for a while yet, and investors pushed the Dow Jones industrial average to a record high. Low rates have been a boon to the market by helping stimulate the economy and making stocks more attractive compared with bonds.
"The Fed is not going to take the punch bowl away," said Brad McMillan, chief investment officer for Commonwealth Financial. "They didn't want to spook the market."
Major indexes drifted before the Fed released a statement at 2 p.m. Eastern time signaling little change in its interest rate policy. Stocks in all three U.S. major indexes rose. The gains were small, but broad. Seven of the 10 industry groups of the Standard & Poor's 500 index rose, led by materials stocks.
FULL story at link.
Trader Neil Catania, right, works on the floor of the New York Stock Exchange Wednesday, Sept. 17, 2014. Financial markets are awaiting the end of a Federal Reserve meeting Wednesday to see whether the Fed sends any clearer signal about the timing of an interest rate increase. (AP Photo/Richard Drew)
Read more: http://apnews.excite.com/article/20140917/financial_markets-6cc6cbe992.html
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