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Stocks rally, gold jumps after the Fed

federal reserve fomc
federal reserve fomc

(Flickr / Federal Reserve) It's Fed day.

Stocks spiked to session highs after the Federal Reserve released its policy statement that left rates unchanged, as expected.

Near 2:40 p.m. ET, the Dow was up 117 points, the S&P 500 was up 13 points, and the Nasdaq was up 17 points.

The Federal Reserve said it is waiting to see further improvement in the labor market.

Many economists expected it be comparably a non-event, with the Fed reiterating its data-dependent stance. However, the statement is being parsed for any clues the Fed gives on its readiness to raise interest rates.

In a morning note to clients, Bank of America Merril Lynch wrote: "With the data more mixed since the June meeting, we expect a cautiously optimistic if non-committal message that should put the likelihood of a September hike around 50% — slightly above current market expectations, but not a strong enough signal for a major repricing to occur."

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F0llowing the statement, the dollar index was a bit lower near 96.76. Treasuries slumped further, with the benchmark 10-year yield up three basis points at 2.82%.

Gold gained about $1 an ounce to $1,098.40.

In economic data, pending home sales unexpectedly fell 1.8% month-on-month in June. Sales are still near nine-year highs.

Twitter shares are getting crushed, down more than 13%, after slumping in after-hours trading yesterday. The company reported profits ahead of estimates. But at the same time, interim CEO Jack Dorsey said "we do not expect to see sustained meaningful growth in [monthly active users] until we start to reach the mass market." Shares plunged 10% ahead of the open.

Yelp is also getting smoked, down 28%, after the company slashed full-year earnings forecasts.

MasterCard shares fell 3% after an earnings miss, as the company continues to grapple with foreign currency movements and the strong dollar.

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