Dow Jones Industrials Hit High for Year After Upbeat Fed Keeps Rates Unchanged
The Dow Jones Industrial Average reached a new high for the year following a generally upbeat assessment from the Federal Reserve, which left interest rates unchanged.</br></br>The Fed signaled that the prospects for the economy are improving, helping to keep stocks up across the board even though the rate decision was anticipated. Many investors said they were relieved the Fed didn't signal excessive nervousness about inflation, though it did give one of its first indications that it might raise interest rates later this year if the economic turnaround continues.</br></br>The Dow Jones Industrial Average closed up 0.54%, or 57.50 points, at 10635.25. That's just above the previous high for the year, hit a week ago, of 10632.35. The Standard & Poor's 500-stock index climbed 0.41%, or 4.74 points to 1170.29. The Nasdaq Composite Index rose 0.20%, or 3.81 points, to 1880.87.</br></br>Bond prices edged higher and the dollar was up.</br></br>Stocks dropped slightly after the Fed's announcement at 2:20 p.m. EST but managed to fend off afternoon selling pressure and close in positive territory.