US stocks close mixed after Fed decision

New York: US stocks closed mixed as investors shifted their focus from midterm elections to the central bank’s monetary policy.

The Dow Jones Industrial Average on Thursday increased 10.92 points, or 0.04 per cent, to 26,191.22. The S&P 500 was down 7.06 points, or 0.25 per cent, to 2,806.83, Xinhua news agency reported.

The Nasdaq Composite Index was down 39.87 points, or 0.53 per cent, to 7,530.88.

The central bank left the benchmark interest rate unchanged after a two-day meeting concluded on Thursday. It noted in a statement that “growth of business fixed investment has moderated from its rapid pace earlier in the year,” but did not provide further details.

The Fed has already raised interest rates three times this year and the market largely expects another hike before the year-end.

Concerns about the pace of interest rate hikes led to market volatility last month.

The major stock indices had posted sharp gains following the US midterm elections. All three major indices jumped more than 2 per cent on Wednesday.

Investors were bullish following the election results as they believed that gridlock in Washington would help the market.

They expected US President Donald Trump’s pro-business policies to continue and Congress to provide a larger check on power with the Democrats taking control of the House of Representatives.