Dow slips .64Associated Press
NEW YORK - Stocks fell today in volatile trading after the Federal Reserve decided against raising interest rates again but left open the possibility of a third rate hike later this year. The Dow Jones industrial average closed 0.64 lower at 10,400.59, having swung from a 106-point gain to a 124-point loss over the final two hours.
The Standard & Poor's 500 fell 3.25 to 1,301.35, but the Nasdaq composite index rose 3.70 to 2,799.67 thanks to a strong showing by certain technology stocks.
Decliners beat advancers by a nearly 3-to-2 ratio on the New York Stock Exchange, with 1,786 down, 1,220 up and 513 unchanged. Nasdaq decliners led by a smaller margin. NYSE volume totaled 958.06 million shares, up sharply from 799.52 million yesterday. The NYSE slipped 1.29 to 599.30; the American Stock Exchange composite index fell 5.18 to 784.65; and the Russell 2000 fell 0.60 to 426.01.
The 30-year Treasury dropped 11/4, or $12.50 per $1,000 face amount; its yield rose 9 basis points to 6.18 percent, the highest level in two months. Yields on two-year notes, which are more sensitive to rate expectations, rose 9 basis points to 5.76 percent.
Stock indexes turned lower in the afternoon, cresting just as the Fed was set to announce the outcome of its latest meeting on inflation and interest rate strategy. Fed officials, faced with a booming economy but no signs of inflation, decided not to raise interest rates, but shifted their policy bias from neutral toward a possible rate increase in the coming months. Stocks rallied yesterday amid expectations the Fed would leave rates unchanged, but the policy shift dampened hopes that the Fed is done with raising rates.