U.S. Stocks Close Modestly Higher as Fed Holds Rates Steady; Dow Rises 0.2%

U.S. stocks closed modestly higher Wednesday after the Federal Reserve left interest rates unchanged, with the Dow up 97.53 points, or 0.2%, at 52,475.10, the S&P 500 up 21.38 points, or 0.3%, at 7,743.98, and the Nasdaq up 72.04 points, or 0.3%, at 26,549.85. The Fed kept its benchmark rate at 3.75% to 4.0%, a decision that was not unanimous: Governor Lisa Cook and Cleveland Fed President Beth Hammack dissented in favor of a quarter-point hike. The Fed said inflation remains elevated and that it "will deliver price stability." Its next meeting is set for December 8-9, with CME FedWatch showing an 85% chance of a quarter-point hike. Biotechnology shares led sector gains, lifting the NYSE Arca Biotechnology Index 2.1%, while the Philadelphia Semiconductor Index rose 1.8%. Transportation stocks fell, with the Dow Jones Transportation Average down 2.5%, and rate-sensitive housing and utilities names also weakened. The 10-year Treasury yield rose 3.1 basis points to 5.024%.