US stocks edge up, yield curve steepens as Fed stands pat
SPY•US indexes ended slightly higher on Wednesday after the Federal Reserve left rates unchanged, while the Treasury yield curve steepened. Traders priced in 82% odds of a December rate increase, and the 10-year Treasury yield rose to about 5.03%.
1. Indexes edge higher
The S&P 500 gained 0.28%, the Nasdaq Composite rose 0.27% and the Dow Jones Industrial Average advanced 0.19%. Technology led S&P 500 sectors, while utilities was the weakest group.
2. Fed leaves rates unchanged
The Federal Reserve held interest rates steady, as widely expected, and reaffirmed its commitment to price stability and returning inflation to its 2% target. It upgraded its assessment of the economy to “strong” expansion from “solid” at its September meeting.
3. December hike odds rise
The decision leaves incoming data to determine whether another rate increase is warranted before year-end. Federal funds futures traders priced in 82% odds of a December increase. The 10-year Treasury yield rose to about 5.03%.
