Stocks initially popped higher but gave back those gains quickly. Investors had hoped that with recent improvements in economic data, the Fed would issue a more upbeat outlook or clarify the measures it would take to stimulate demand.
The central bank nudged the door wider to pumping more money into the economy but kept overnight interest rates unchanged near zero, as expected.
With the S&P 500 up about 9 percent this month, investors still felt a conflict whether a move by the Fed would be enough to put the economy on a path to sustainable growth.
"One interpretation would be that things are deteriorating and therefore they need to do more. On the other hand, the favorable aspect of it would be they're going to print more money to boost asset prices," said Bucky Hellwig, senior vice president at BB&T Wealth Management in Birmingham, Alabama.
The confusion can be seen in disparate classes of investments rallying simultaneously, with bond prices rising alongside stocks in recent days.
Volume picked up after the announcement but was still light, with 8.03 billion shares traded on the New York Stock Exchange, the American Stock Exchange and Nasdaq. Last year's estimated daily average was 9.65 billion shares.
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Dow Jones Industrial Average
(DJI: ^DJI)| Index Value: | 10,761.03 |
|---|---|
| Trade Time: | 4:03PM EDT |
| Change: |  7.41 (0.07%) |
| Prev Close: | 10,753.62 |
|---|---|
| Open: | 10,753.39 |
| Day's Range: | 10,717.74 -10,833.39 |
| 52wk Range: | 9,378.77 -11,309.00 |
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