Nov. 2 (Bloomberg) -- U.S. stocks and commodities trimmed gains, while the dollar and Treasuries pared losses, as Federal Reserve policy makers refrained from announcing additional measures to stimulate the economy.
The Standard & Poor’s 500 Index rose 1 percent to 1,230.08 at 1:17 p.m. in New York after climbing as much as 2 percent earlier. The Dollar Index, a gauge of the currency against six major peers, slipped 0.1 percent to 77.165, recouping most of a 0.7 percent retreat. Ten-year Treasury yields climbed two basis points to 2.01 percent after surging nine points earlier.
The Fed said the economy picked up in the third quarter while “significant downside risks” remain as policy makers held off on taking any additional steps to ease monetary policy. Earlier gains in stocks came after ADP Employer Services reported a bigger-than-forecast increase in payrolls in October and investors speculated the Fed would signal it was considering a third round of asset purchases to boost growth.
“The Fed wants to have as much as powder dry as they can simply because if Europe slows up they want to have something in reserve,” Bruce McCain, who helps oversee about $20 billion as chief investment strategist at the private-banking unit of KeyCorp in Cleveland, said in a telephone interview. “There’s a lot more concern at this point that the Fed would try too hard to juice up things and perhaps complicate an inflation picture.”
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