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Stocks swing, end mixed as Fed keeps rates steady

Adam Shell
USA TODAY

Stocks ended mixed Wednesday after the Federal Reserve's afternoon decision to leave interest rates unchanged, while signalling it was open to future rate hikes.

Among major indexes, the Nasdaq composite stayed positive the entire session, ending up 0.6%.

The Dow Jones industrial average -- which has closed lower three of the past four sessions since hitting an all-time high on July 20 -- ended a trace lower, off less than two points. Losing 0.1% was the S&P 500.

Both of those market gauges began the day in positive territory, then went negative before getting a boost above break-even with the 2 p.m. ET Fed news, only to slip back by the closing bell two hours later..

Surging Apple shares helped lift tech stocks and the tech-heavy Nasdaq. AAPL gained 6.6% for the day and ended above $100 a share.

The Fed provided an upbeat view of the economy and the job market and said risks have diminished, leaving the door open to a September hike.

John McNierney, right, of Citadel Securities, with John Panin, left, and Greg Rowe, second left, at the New York Stock Exchange, Friday, July 22, 2016. (AP Photo/Mark Lennihan)

Fed holds rates steady; leaves September hike on table

The Fed, which hiked rates off zero back in December for the first time in nearly a decade, has kept rates steady this year, citing uncertainty abroad, the aftermath of the 'Brexit' vote and an early-year slowdown in the U.S.

Corporate earnings results were the main driver of stock prices early in Wednesday's session, with three well-known Dow components reporting quarterly results.

The big winner of the day is Apple (AAPL), which saw its shares surge about  7% to a three-month high after iPhone sales, which fell 15%, still came in above estimates at 40.4 million units. The maker of the iPhone, which has lost its luster with investors after posting its first-ever iPhone sales drop in its previous quarter, also forecast better sales in the current quarter.

Apple shares surge 7% and jump back above $100

Dow component Boeing (BA) saw its shares rise 0.8% after it topped profit estimates and reaffirmed its revenue guidance for the rest of the year. Coca-Cola (KO) shares fell 3.3% on a sales miss and a downgrade of its outlook.

Another dismal quarter and weak revenues doomed shares of Twitter (TWTR), which fell 14.5%.

In economic news, June orders for durable goods, such as refrigerators and ovens that last a long time, fell 4%, a bigger drop than expected.

In foreign stock markets, Japan's Nikkei 225 index soared 1.7% and the broad Stoxx Europe 600 stock index was up 0.4%.

Wall Street will be closely watching what the Bank of Japan does at its policy meeting Friday, when it is expected to announce further stimulus measures.

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