Stocks Stay Up After Rate Holds

Wall Street closed higher Wednesday, holding on to its gains after the Federal Reserve kept short-term interest rates steady, as expected, but left the door open to additional rate increases.
Stocks were already higher before the Fed announcement, rebounding from Tuesday’s losses on news Wednesday that Oracle Corp.’s quarterly profit rose 29 percent and Morgan Stanley also had a strong quarter.
The Fed’s move “sets a great stage for better market performance going into the end of the year, although the market may need to take a breather for the next day or two,” said Steve Neimeth, senior portfolio manager for AIG SunAmerica Asset Management.
Bonds held steady, with the yield on the 10-year Treasury note at 4.73 percent.
Crude oil futures fell on a government report of increased supplies of crude and distillates, including heating oil. A barrel of light crude settled at $60.46, down $1.20.
Markets were unsettled Tuesday by a bloodless coup in Thailand that ousted the unpopular caretaker prime minister and left the chief of the army in charge. European markets rebounded smartly Wednesday.