US stocks mixed after Fed keeps interest rates low

Trader James Dresch, right, works on the floor of the New York Stock Exchange, Monday, June 30, 2014. Wall Street stocks Wednesday, July 30, finished mixed after the US Federal Reserve kept interest rates near zero and government data showed surprisingly strong second-quarter US economic growth. AP

NEW YORK–Wall Street stocks Wednesday finished mixed after the US Federal Reserve kept interest rates near zero and government data showed surprisingly strong second-quarter US economic growth.

The Dow Jones Industrial Average fell 31.11 points (0.18 percent) to 16,881.00, while the tech-rich Nasdaq Composite Index gained 20.20 (0.45 percent) to 4,462.90.

The broad-based S&P 500 essentially split the difference, rising a mere 0.28 (0.01 percent) to 1,970.23.

Stocks opened higher after the Commerce Department reported that second-quarter growth was 4.0 percent and trimmed the size of the first-quarter contraction.

But the Dow and S&P 500 tilted into negative territory at mid-morning before rallying somewhat after the Fed interest-rate decision at 1800 GMT.

US Treasury bond yields rose, suggesting the bond market anticipates higher interest rates.

The yield on the 10-year US Treasury rose to 2.55 percent from 2.46 percent Tuesday, while the 30-year advanced to 3.31 percent from 3.22 percent. Bond prices and yields move inversely.

“There is a consensus belief that the Fed funds rate will be higher in 2015,” said Art Hogan, chief market strategist at Wunderlich Securities. “The discussion will revolve at what point in 2015.”