US Stocks Hold Steady as Fed Leaves Rates Unchanged; S&P 500 Gains 0.3%

U.S. stocks closed modestly higher Wednesday after the Federal Reserve opted not to raise its main interest rate to combat elevated inflation, while the bond market swung sharply on the decision. The S&P 500 rose 21.38 points, or 0.3%, to 7,743.98. The Dow Jones Industrial Average added 97.53 points, or 0.2%, to 52,475.10, and the Nasdaq composite gained 72.04 points, or 0.3%, to 26,549.85. The Russell 2000 rose 11.64 points, or 0.4%, to 2,830.51. The two-year Treasury yield initially jumped after the Fed held rates steady, then reversed course as traders pared expectations for coming hikes. Higher rates can help contain inflation but may also weigh on the economy. For the week, the S&P 500 is up 1.6%, the Dow 0.5%, the Nasdaq 2.3% and the Russell 2000 2%. Year to date, the S&P 500 has gained 13.1%, the Dow 9.2%, the Nasdaq 14.2% and the Russell 2000 14%.