The stock market erased an earlier rally after the Federal Reserve refrained from indicating when it will reduce the pace of stimulus and data showed the economy grew more than projected in the second quarter. The S&P 500 dropped less than 1 point to 1,685.75. The benchmark gauge gained 4.95 percent for July, the biggest monthly advance since January. The Dow dropped 21.05 points, or 0.14 percent, to 15499.54.
The Fed repeated the pledge it has used since September that it will continue the purchases until the U.S. labor market outlook has improved substantially. Policy makers left unchanged their commitment to hold the target interest rate near zero as long as the jobless rate remains above 6.5 percent and the outlook for inflation over one to two years doesn’t exceed 2.5 percent.
Assistant State Treasurer
Chief Investment Officer
State of Louisiana
Department of the Treasury