Wall Street rally fades late after Fed

Wall Street rally fades late after Fed

U.S. stocks rallied but lost steam on Wednesday after the Federal Reserve said it would keep rates near zero for "an extended period" even as it expressed confidence in the economic recovery.

Stocks pushed higher in the hour following the FOMC statement, after the Fed kept its benchmark federal funds rate unchanged in a range of zero to 0.25 percent. For details, see (ID:nN04453484) The S&P 500 rose as high as 1,061.00 and the Nasdaq touched 2,081.00.

The Fed's closely watched policy statement was somewhat more upbeat than its statement in September. However, it was also more explicit about why it expects to keep rates low, citing "low rates of resource utilization, subdued inflation trends, and stable inflation expectations."

Intel Corp (NasdaqGS:INTC - News) rose 1.3 percent to $18.59 even after it was sued by New York Attorney General Andrew Cuomo, who accused the world's largest chipmaker of threatening computer makers and paying billions of dollars in kickbacks to maintain its market dominance.

Advancing stocks outnumbered declining ones on the NYSE by a ratio of 8 to 7, while on the Nasdaq, about eight stocks fell for every five that rose.