WASHINGTON (dpa-AFX) - After moving notably higher over the two previous sessions, stocks turned in a relatively lackluster performance during trading on Wednesday. The major averages spent much of the day lingering near the unchanged line.
The major averages eventually closed modestly higher. The Dow edged up 97.53 points or 0.2 percent at 52,475.10, the S&P 500 rose 21.38 points or 0.3 percent to 7,743.98 and the Nasdaq climbed 72.04 points or 0.3 percent to 26,549.85.
The higher close on Wall Street came after the Federal Reserve announced its widely expected decision to leave interest rates unchanged following its latest meeting.
The Fed said it decided to maintain the target range for the federal funds rate at 3.75 to 4.0 percent in support of its dual goals of maximum employment and inflation at the rate of 2 percent over the longer run.
Unlike last month's unanimous decision to raise rates by a quarter point, there was some division among Fed officials at the latest meeting.
The central bank revealed that Fed Governor Lisa Cook and Cleveland Fed President Beth Hammack voted against leaving rates unchanged, preferring to raise rates by another quarter point.
The Fed's accompanying statement acknowledged inflation remains elevated but said the accumulation of more information will help determine the policy stance appropriate to ensure a timely return of inflation to the 2 percent goal. The Fed declared it 'will deliver price stability.'
The central bank's next monetary policy meeting is scheduled for December 8-9, with CME Group's FedWatch Tool currently indicating an 85.0 percent chance the Fed will raise rates by a quarter point.
Even after the Fed announcement, traders seemed reluctant to make more significant moves ahead of the release of earnings news from Microsoft (MSFT) and Google parent Alphabet (GOOGL) after the close today's trading.
'Investors will be looking beyond headline earnings towards cloud growth, AI-related capital expenditure and forward guidance, particularly whether substantial infrastructure investments are generating sustainable returns,' said Daniela Hathorn, Senior Market Analyst at Capital.com.
She added, 'Strong results could help restore confidence in the Nasdaq, but higher spending without corresponding improvements in profitability could renew valuation concerns.'
Sector News
Most of the major sectors ended the day showing only modest moves, although biotechnology stocks moved sharply higher, driving the NYSE Arca Biotechnology Index up by 2.1 percent.
Significant strength also emerged among semiconductor stocks, as reflected by the 1.8 percent gain posted by the Philadelphia Semiconductor Index.
On the other hand, transportation stocks showed a substantial move back to the downside, with the Dow Jones Transportation Average tumbling by 2.5 percent after ending the previous session at its highest closing level in well over a month.
Interest rate-sensitive housing and utilities stocks also came under notable selling pressure over the course of the session.
Other Markets
In overseas trading, stock markets across the Asia-Pacific region moved mostly higher during trading on Wednesday. Japan's Nikkei 225 Index jumped by 1.1 percent, while China's Shanghai Composite Index advanced by 0.9 percent.
European stocks also saw modest strength on the day. While the French CAC 40 Index ended the day nearly unchanged, the U.K.'s FTSE 100 Index inched up by 0.1 percent and the German DAX Index climbed by 0.4 percent.
In the bond market, treasuries have moved to the downside after closing roughly flat for two straight days. Subsequently, the yield on the benchmark ten-year note, which moves opposite of its price, has risen by 3.1 basis points at 5.024 percent.
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