Stocks Rise, Aussie Drops With Markets in Central Banks' Thrall
- Fed stands pat on rates, hints may still move this year
- Small-cap shares post biggest one-day advance of 2015
Fed: Economy Is Still Expanding, Rates Unchanged
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Treasuries tumbled, while the dollar rallied, after the Federal Reserve signaled it remains prepared to raise interest rates as soon as December. U.S. stocks resumed an October rally that has them on pace for the best monthly performance in four years.
Yields on benchmark 10-year Treasury notes rose to 2.10 percent, while two-year rates surged to a one-month high. The Bloomberg Dollar Spot Index erased a loss to climb to its highest intraday level since August. The Standard & Poor’s 500 Index reversed declines to end Wednesday higher as bank and energy stocks surged, while small caps capped their biggest one-day rally of the year. Gold retreated, while crude oil rebounded.