The announcement bolstered investors’ hopes that the Federal Reserve’s key rate hike on Wednesday will remain at 0.5 percent.
But the stock market rally slowed down during afternoon trading. At the close, the broad S&P 500 index had risen 0.7 percent, technology-heavy Nasdaq’s composite index increased. 1.0 percent and the Dow Jones industrial index rose 0.3 percent.
At the same time, the interest rate on the ten-year government bond fell, from 3.62 percent late Monday to 3.52 percent on Tuesday afternoon.