Main shares rise after Fed decision

 

BLUE-chip share prices rose yesterday despite a slump in the technology sector after the US Federal Reserve decided to leave key short-term interest rates unchanged.

The Dow Jones index of 30 leading industrials rose 26.74 points to close at 5,670.60. On the broader New York Stock Exchange some 400 million shares traded, with 1,266 shares up, 1,088 down and 781 unchanged.

On the bond market, the rate on the bellwether 30-year Treasury bond was up to 6.58 per cent from 6.57 per cent on Monday.

There was little reaction to a decision by the Fed Open Market Committee to keep interest rates steady amid mixed signals on the strength of the US economy.

Analysts said most of the activity was from investors squaring portfolios ahead of the end of the first fiscal quarter.

But technology shares were off due to indications that computer sales were sluggish which could affect a broad industry.