US stocks narrow losses after Fed meeting

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US equity indices pulled back some of their losses at the end of the day on Wednesday, after the Federal Reserve opted to sit pat while saying it believed the recent slowdown in US growth was temporary.

The S&P 500 closed 0.13 per cent lower, at 2,388, while the Dow Jones was flat at 20,957. After striking a fresh record closing high on Tuesday, the tech-heavy Nasdaq suffered a 0.37 per cent dip, a day after several major tech stocks — including Apple — fell following disappointing earnings results.

Energy stocks led the gains on the Dow, up 1 per cent in the wake of data showing that US crude stockpiles fell less than expected, while materials were a drag, as the sector fell 1.18 per cent. The financials sector led the S&P 500, meanwhile, with the sector picking up 0.6 per cent, led by a nearly 0.9 per cent gain in bank stocks.

The dollar index continued to climb after the Fed’s meeting, rising 0.37 per cent on the day to 99.32 as expectations of a rate increase at the central bank’s June meeting hit 94 per cent. Treasuries continued to fall, with the yield on the 10-year note — which moves inversely to its price — up 4 basis points to 2.32 per cent.

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