By Noel Randewich
(Reuters) - Wall Street rebounded from earlier lows on Wednesday after the Federal Reserve left interest rates unchanged but opened the door to a resumption of monetary policy tightening this year.
The Fed was not expected to move interest rates at its two-day meeting, ended on Wednesday, but investors have been anxious for hints about when an increase might come in light of concerns about fallout from Britain's vote in June to leave the European Union.
The U.S. central bank indicated less worry about possible shocks that could push the U.S. economy off course and noted that inflation expectations were little changed in recent months.
"The statement is more constructive about the economy," said Mike Materasso, senior vice president at Franklin Templeton in New York. "A rate increase is warranted this year, most likely at the end of the year, but a lot has to do with a benign world arena."
Major stock indexes reduced earlier declines following the announcement.
At 2:37 pm, the Dow Jones industrial average <.DJI> was up 24.27 points, or 0.13 percent, at 18,498.02; the S&P 500 <.SPX> fell 1.25 points, or 0.06 percent, to 2,167.93.
The Nasdaq Composite <.IXIC> added 27.18 points, or 0.53 percent, to 5,137.22.
Seven of the 10 major S&P sectors were lower, led by a 1.15 percent drop in the consumer staples index <.SPLRCS> followed by a 0.93 percent decline in energy <.SPNY>.
Shares of Boeing
Helped by the airplane maker's results, S&P 500 companies' aggregate earnings are now expected to decline 3.0 percent for the second quarter, compared with the 3.5 percent decline expected a day ago, according to Thomson Reuters I/B/E/S.
Coke's
In contrast, Apple Inc
Oil prices
Declining issues outnumbered advancing ones on the NYSE by a 1.32-to-1 ratio; on Nasdaq, a 1.08-to-1 ratio favoured advancers.
The S&P 500 posted 42 new 52-week highs; the Nasdaq Composite recorded 105 new highs and 25 new lows.
(Additional reporting by Yashaswini Swamynathan in Bengaluru; Editing by James Dalgleish and Steve Orlofsky)
