S&P 500 and Dow industrials ended lower yesterday, giving up a one per cent rally in a choppy session, as investors struggled to interpret the Federal Reserve’s decision to hold off on raising interest rates.
The Dow Jones industrial average fell 65.27 points, or 0.39 per cent, to 16,674.68, the S&P 500 lost 5.11 points, or 0.26 per cent, to 1,990.20, but the Nasdaq Composite added 4.71 points, or 0.1 per cent, to 4,893.95.
The US central bank held rates steady in a bow to worries about the global economy, financial market volatility and sluggish inflation at home. However, it left open the possibility of a modest policy tightening later this year.
The S&P financial index led the decline after being among the top performers throughout the prior five sessions.
The decline in financial stocks suggests that investors now believe interest rates will remain low for longer than previously expected.