Bloomberg News

U.S. Stocks Remain Little Changed Following Fed’s Statement

June 22, 2011

June 22 (Bloomberg) -- U.S. stocks remained little changed after the Federal Reserve confirmed its plans to end a $600 billion bond-purchase program as scheduled in June and maintain its policy of reinvesting proceeds from its securities holdings.

The Standard & Poor’s 500 Index rose less than 0.1 percent to 1,295.69 at 12:30 p.m. in New York after climbing for four straight days. The Dow Jones Industrial Average slipped 12.03 points, or 0.1 percent, to 12,177.98.

“The Committee will complete its purchases of $600 billion of longer-term Treasury securities by the end of this month and will maintain its existing policy of reinvesting principal payments from its securities holdings,” the Federal Open Market Committee said today in a statement after a two-day meeting in Washington. “The economic recovery is continuing at a moderate pace, though somewhat more slowly than the committee had expected.”

The S&P 500 retreated 5 percent from this year’s high at the end of April through yesterday amid weaker-than-estimated economic data and concern about Europe’s debt crisis. The index was still up 3 percent in 2011 through yesterday on government stimulus measures and better-than-expected earnings.

The S&P 500 surged 24 percent through yesterday since Bernanke’s Aug. 27 speech in Jackson Hole, Wyoming, where he foreshadowed the second round of quantitative easing, known as QE, to boost the economy.

To contact the editor responsible for this story: Michael Regan at mregan12@bloomberg.net


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