U.S. Stocks Pare Gains as Optimism Over Fed Stimulus FadesJeff Sutherland
U.S. stocks pared gains after earlier optimism over central bank stimulus efforts faded.
The Standard & Poor’s 500 Index rose 0.1 percent to 1,670.30 at 1:38 p.m. in New York.
Equities rallied as much as 1.1 percent earlier in the day as Federal Reserve Chairman Ben Bernanke said in prepared remarks to Congress that a premature withdrawal of stimulus efforts would put the economic recovery at risk. Stocks pared gains after he said the central bank could “step down” the pace of asset purchases in the next few meetings if the labor market continues to improve and “we have confidence that that is going to be sustained.”