Stocks hold gains after Fed votes to keep interest rates low

NEW YORK (AP) — Stocks were holding onto their gains late this afternoon after the Federal Reserve announced it would keep interest rates low. The market is bouncing back after a four-day losing streak.

The Dow Jones industrial average rose 39 points, or 0.2 percent, to 17,716 as of 2:15 p.m., roughly 15 minutes after the Fed decision was announced. The Standard & Poor's 500 index rose five points, or 0.2 percent, to 2,080 and the Nasdaq composite rose 10 points, or 0.2 percent, to 4,854.

As expected, the Federal Reserve's policymakers voted to keep interest rates unchanged at their current level of 0.25 percent to 0.50 percent.

In their statement, the Fed said that while U.S. economic activity continues to strengthen "the pace of improvement in the labor market has slowed," a reference to the April and May job reports that were weaker than anticipated.

Stocks rose after the Fed decision was announced, and bond prices rose as well as low interest rates means investors can handle lower bond yields.