U.S. stocks trimmed gains on Wednesday, with the Dow turning negative after the Federal Reserve reiterated its intention to keep interest rates low for the foreseeable future to ensure a sustainable economic recovery.
The Fed voted unanimously to keep benchmark borrowing costs in a range pf zero to 0.25 percent, which represents historic lows. The central bank's policy-making committee also reminded markets it will let most of the special liquidity facilities, which have helped bolster the U.S. banking system, expire by early next year.
I saw nothing new out of the Fed today that led me to believe it was going to change any scenario that I came into the day with, said Stephen Massocca, managing director of Wedbush Morgan in San Francisco.
It's a neutral for stocks.
Banking stocks, which had initially climbed after sources said global banking regulators will give banks a grace period before enforcing more stringent capital rules, also slipped after the Fed statement.
The S&P Financial Index <.GSPF> rose 0.5 percent, pulling back from gains of more than 1 percent.
The Dow Jones industrial average <.DJI> shed 8.54 points, or 0.08 percent, to 10,443.46. The Standard & Poor's 500 Index <.SPX> added 1.49 points, or 0.13 percent, to 1,109.42. The Nasdaq Composite Index <.IXIC> gained 5.37 points, or 0.24 percent, to 2,206.42
(Reporting by Chuck Mikolajczak; Additional reporting by Caroline Valetkevitch; Editing by Jan Paschal)