Stocks Stay Afloat After Fed Comments

While the Fed has moved aggressively to lower borrowing costs, most experts believe no further rate reductions are forthcoming, and that instead, the next change, when it does occur, will be a hike.

"I think there was some feeling out there that they may change course and raise rates, but they stayed the course, and that's why we're seeing a mildly positive reaction at this point," said Matt King, chief investment strategist at Bell Investment Advisors.

Earlier, European Central Bank President Jean-Claude Trichet signaled that ECB officials could be close to lifting rates on the continent in a bid to cool off inflation there.

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Chip Hanlon, president of Delta Global Advisors, said that the market had priced in its expectation that the Fed would remain on the sidelines. "It would take a surprise from the Fed to move the market," he said. "I think today is more about oil."

Crude oil inventories increased by 803,000 barrels, compared with expectations for a decline of 1.1 million barrels. Oil fell on that news, but slowed its decline after the Fed statement. The price of oil was recently down $2.48 to $134.52 a barrel. Gold was gaining $3.80 at $886.10 an ounce.

"My guess is that the way the bigger money is taking it is that the statement wasn't strong enough to skyrocket the dollar, so it wasn't enough to short-circuit oil," said Joseph Clark, founder and managing partner at the Financial Enhancement Group. He said the market, lacking fundamental catalysts, will probably remain range-bound in the immediate future.