Stock market today: Wall Street gives back some gains after the Fed extends interest rate pause

BANGKOK (AP) — Markets on Wall Street Thursday gave back some of their gains from a day earlier, when the Federal Reserve proclaimed the U.S. economy healthy and left its main interest rate unchanged.

Futures for the S&P 500 fell 0.4% before the bell and futures for the Dow Jones Industrial Average were down 0.3%. Nasdaq futures dipped 0.5%.

Discount retailer Five Below jumped more than 11% in premarket after it reported fourth-quarter sales and profit that beat analyst expectations. The Philadelphia company also issued strong sales guidance and said it expects to open 150 stores this year.

Companies reporting after the closing bell Thursday include FedEx and Nike.

Also later Thursday, the Labor Department shares its latest layoffs-related data and the National Association of Realtors releases existing home sales for February.

In addition to the Fed's announcement Wednesday, stocks were boosted by easing yields in the bond market. When Treasurys are paying investors less in interest, investors may be willing to pay higher prices for stocks.

The rally followed weeks of sharp swings for the U.S. stock market as investors fret over how much pain President Donald Trump will allow the economy to endure in order to remake the system. Trump’s barrage of announcements on tariffs and other policies have created so much uncertainty that economists worry U.S. businesses and households may freeze and pull back on their spending.

Fed Chair Jerome Powell acknowledged the rising pessimism among U.S. consumers and companies shown by recent surveys, but he also pointed to data such as relatively low unemployment that show the economy is still strong.

The Fed has been holding interest rates steady this year after cutting them sharply through the end of last year. While lower rates can help give the economy a boost, they can also push inflation upward.

Fed officials indicated they’re still penciling in two cuts to the federal funds rate by the end of this year.

Powell pushed back against fears about what’s called “ stagflation,” where the economy stagnates but inflation remains high.

In Europe, markets fell after a mixed day in Asia, where Chinese markets declined on heavy selling of tech-related stocks.

Germany's DAX lost 1.5%, while the CAC 40 in Paris fell 1%. Britain's FTSE 100 was down just 0.1% at midday

Markets were closed in Japan for a holiday.

Hong Kong's Hang Seng lost 2.2% to 24,219.95 and the Shanghai Composite index dropped 0.5% to 3,408.95. Search engine company Baidu's shares dropped 5.4% and e-commerce and financial giant Alibaba's shares were down 4%. JD.com lost 4.9%.

In South Korea, the Kospi gained 0.3% to 2,637.10, while Australia's S&P/ASX 200 added 1.2% to 7,918.90.

Taiwan's Taiex jumped 1.9%, while the SET in Bangkok gave up 0.7%.