Stocks are all over the place on Wednesday after the Federal Reserve left its key interest unchanged.
After jumping following the Fed’s announcement, the major indexes are spiking rapidly though in positive territory.
Near 2:23 p.m. ET, the Dow was up 51 points (0.29%), the S&P 500 was up 5.75 points (0.28%), and the Nasdaq was up 12.7 points (0.26%). The Dow had been up as much as 0.5% immediately following the announcement.
Trading volume was light ahead of the Fed announcement.
Treasury yields dropped following the move. The 10-year yield was down four basis point to 1.57%, the lowest since September 2012.
Gold has jumped almost $10, at $1295 an ounce, the highest since January 2015.
The move was widely expected by economists. The Fed also lowered its expectations for future rate hikes, with 6 members now expecting one hike this year. At its March meeting, only one member forecast just one hike this year.
Stocks closed lower but mostly little changed during the last four trading sessions, amid anxiety over next week’s referendum on whether or not the UK will stay in the EU. European indexes, which also fell, were higher in trading on Wednesday.
Meanwhile, West Texas Intermediate crude oil futures were down 1.2% to $47.91 per barrel; on Tuesday, the American Petroleum Institute reported an unexpected build in inventories.
In other economic news:
- Producer prices rose more than expected in May, mostly due to a rise in gas costs. The producer price index (PPI) for final demand rose 0.4%.
- Industrial production slipped yet again last month, by 0.4%, as durable-goods production slowed. Mining production rose for the first time in nine months, thanks to coal.
- And, manufacturing in New York unexpectedly spiked in June. The Empire State general business conditions index rose to 6.01 and had been forecast at -4.90.