NEW YORK — Wall Street ended an erratic day with a modest gain after the Federal Reserve left interest rates unchanged and issued a mixed assessment of the economy.
The hold was expected, after several speeches by Fed officials suggesting that inflation is becoming a bigger worry for policymakers.
It was the first time in 10 months that the central bank did not cut rates. Last summer, the key rate was above 5 percent. It now stands at 2 percent.
The Dow Jones industrial average closed up 4.40, or 0.04 percent, to 11,811.83, after rising more than 100 points shortly after the Fed announcement.
Broader stock indicators managed to log stronger gains than the blue chips. The Standard & Poor’s 500 index rose 7.68, or 0.58 percent, to 1,321.97, and the Nasdaq composite index rose 32.98, or 1.39 percent, to 2,401.26.
Trading is often uneven after a rate decision as the market parses the central bank’s statement.
“One of the other factors complicating trading today is that we’re close to the end of the quarter,” said Michael Sheldon, chief market strategist at RDM Financial Group in Westport, Conn.
Volatility can arise when managers shift their portfolios’ holdings before presenting them to shareholders at the end of the quarter.
A sharp drop in Boeing also dragged on the Dow. Shares of the aircraft manufacturer dropped to their lowest level in more than two years, finishing down $5.15, or 6.9 percent, at $69.64.
Crude oil fell $2.45 to $134.55 a barrel on the New York Mercantile Exchange after the decision. Gold prices also slid, while the dollar weakened against most other major currencies.
Some investors were relieved that policymakers did not talk tougher on inflation.
“I think it was a conscious effort, probably, to hold down expectations that they are going to immediately start fighting inflation and look to raise interest rates,” said Bruce McCain, chief investment strategist at Key Private Bank in Cleveland.
McCain said the Fed needs time to determine what will happen with energy prices because they are set by worldwide demand.
China’s decision to decrease fuel subsidies and possible interest-rate hikes in Europe could help curb energy demand, he said.
