March 16th, 2010
06:26 PM ET

Stocks and oil prices rise on Fed decision

A look at highlights from the day's business news:

Stocks rise after Fed holds rates

Stocks rose Tuesday after the Federal Reserve voted to keep interest rates at historic lows and Standard & Poor's did not downgrade Greece's credit rating.

The Dow Jones industrial average was up 35 points, or 0.3 percent, at with about 1-1/2 hours left in the session. The S&P 500 index rose 7 points, or 0.6 percent. The Nasdaq composite gained 14 points or 0.6 percent.

In a widely expected move, the Federal Reserve announced plans to hold its benchmark interest rate at historic lows near zero percent, the level at which the rate has been since December 2008. Echoing past statements, the Fed added that rates will remain "exceptionally low" for an "extended period" of time.

Treasurys unmoved by Fed

U.S. debt prices rose slightly, but overall, trading was slow in the Treasury market  both before and after the Fed's announcement on interest rates.

What prices are doing: The benchmark 10-year note rose 12/32 to 99-12/32 and its yield dropped to 3.655 percent. The 30-year bond advanced 19/32 to 100-19/32 and its yield fell to 4.591 percent. Bond prices and yields move in opposite directions.

The 2-year note rose 2/32 to 99-30/32 with a yield of 0.92 percent. The 5-year note inched up 7/32 to 100-3/32 with a yield of 2.358 percent.

 What's moving the market: Analysts weren't expecting a hike in interest rates, but rather, were looking specifically for any hints in the statement about future actions. And the Fed delivered no surprises there.

Dollar falls on Fed statement

The dollar declined against major currencies after the Federal Reserve said it will leave interest rates unchanged.

What prices are doing: The dollar fell 0.6 percent versus the euro to $1.3755 and dipped 1.12 percent against the British pound to $1.5226. The dollar was down 0.1% at ¥90.43 against the Japanese yen.

Oil soars as Fed maintains key rate

Oil prices soared on amid a weaker dollar and a rebound in the stock market, as the Federal Reserve left a key interest rate unchanged.

What prices were doing: Crude skyrocketed $1.90 to settle at $81.70 a barrel on Tuesday.

What's moving the market: Prices rebounded from Monday's sell-off, as the dollar weakened and bolstered demand for crude.

The dollar was down against the euro, propping up oil, which is denominated in U.S. dollars. Oil shot up to an intraday high of $82.04 a barrel. writers Chavon Sutton, Annalyn Censky, Blake Ellis and Ben Rooney contributed to this story.

Filed under: Economy
soundoff (3 Responses)
  1. R. Larimer

    Funny but wasn't everbobody saying that oil had "decoupled" from the dollar whren the Greece crisis crashed the Euro? The real reason that the Fed meeting raised oil prices was the confirmation of continued availabiity of cheap Fed money for the banks to SPECULATE with. Oil demand is not rising!

    March 16, 2010 at 7:26 pm | Report abuse |
    • paula

      I agree with that. As stated they raise prices as they want. Why are we paying for speculation?????
      Something wrong with this picture.
      What if we speculate we need more money and refuse to pay our taxes oops!!

      July 16, 2010 at 7:07 am | Report abuse |
  2. paula

    Its all a game,They keep oil prices where they want them. Remember we are paying for this SO CALLED BANK BAIL OUT. They raise oil prices on what ever excuse they think the people will buy, weather, oil spill, time of day, time of year, time of month, when they want it raised and we need to pay other countries there past due payments, everything skyrockets. Dosent take a scientist to figure it out, Give this country back to the people.
    The americian people have been sold out again. WE THE PEOPLE OF THE U.S.A should have been the ones bailed out. Instead they give the ones that screwed us more of our money. Its a crime and a shame. The banks, wall street should be the ones paying back all this money. Is it leagal to take my money for something I didnt order??
    Why dont you understand?? Untill you bring our bussiness back to the U.S the will be no jobs, DUGH???

    July 16, 2010 at 7:03 am | Report abuse |