Wall Street pares losses on Fed

US stocks gain after release of latest US Federal Reserve statement, but remain in negative territory.

United States stocks pared some losses after the Federal Reserve announced no change to its easy-money policies, as expected.

The Dow Jones Industrial Average was nearly unchanged, falling three points, less than 0.1% to 15,677 points. On Tuesday, the Dow rose 111 points, or 0.7%, to close at a record high of 15,680.35 points, its first record close since Sept. 18.

The S&P 500 index shed two points, or 0.1%, to 1,770 points.

The Nasdaq Composite Index fell seven points, or 0.2%, to 3,945 points. The S&P 500 rose 0.6% Tuesday to a third-straight record high, and seventh record in nine sessions.

Stocks have rallied strongly this year, with the 24% gain in the S&P 500 fueled, in part, by the Fed's easy-money policies. The Dow briefly pared some losses after the statement, but returned to trade near levels from before the announcement.

The yield on the 10-year Treasury note pushed higher after the statement, rising to 2.522% from 2.507% late Tuesday.

The central bank was widely expected to keep its $US85-billion-a-month bond-purchasing programs intact. Central-bank officials have said the decision to pare stimulus efforts would depend on economic data, particularly the labour market, which hasn't yet shown signs of strong recovery.

The Fed statement pulled investor attention away from the ongoing stream of corporate earnings reports. Now that 311 of S&P 500 companies have reported results, the index is on track for 2.5% of third-quarter earnings growth from the previous year, according to FactSet. Analysts expected earnings growth of 3% before the start of earnings-reporting season. But excluding a surprise loss from JPMorgan Chase, the index was set for growth of 5.1% of yearly growth.