Fed News Sends Bond Yields Sharply Lower

Stocks get brief bump, but end mostly lower
By Newser Editors and Wire Services
Posted Mar 20, 2019 3:16 PM CDT
In this March 12, 2019, file photo specialists James Denaro, left, and Mario Picone work at a post on the floor of the New York Stock Exchange.   (AP Photo/Richard Drew, File)

(Newser) – Stocks got a brief bump from news that the Federal Reserve doesn't plan to raise rates this year, but still ended mostly lower after those gains faded, the AP reports. Bond prices rose sharply Wednesday after the Fed forecast slower economic growth. That sent bond yields down to the lowest they've been in more than a year. The Fed said it will stop shrinking its bond portfolio in September, which will help hold down long-term interest rates. Banks fell as the outlook for higher rates dimmed. The S&P 500 fell 8 points, or 0.3%, to 2,824. The Dow Jones Industrial Average lost 141 points, or 0.5%, to 25,745. The Nasdaq edged up 5 points, or 0.1%, to 7,728. The yield on the 10-year Treasury note dropped to 2.53%. (Read more stock market stories.)

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