US stocks rise as Fed slows expected pace of rate rise

Markets rose on Wednesday.

The S&P 500 rose 0.6 percent after the Federal Reserve announced that it was leaving interest rates unchanged and that it expects the federal-funds rate to rise to 0.875 percent by year-end, implying just two interest-rate increases.

The US two-year Treasury yield fell to 0.873 percent from 0.968 percent on Tuesday.

Earlier, the STOXX Europe 600 rose less than 0.1 percent and the Shanghai Composite rose 0.2 percent.

US crude oil jumped 5.8 percent on Wednesday.

Some analysts are skeptical about the rally continuing.

“We’re concerned about the sustainability of the rally right now,” said Marcelle Daher, co-head of global asset allocation at John Hancock Asset Management. “We just need to see some firmer growth coming in, not just in the U.S. but from other parts of world, to get excited about equities.”

But confidence in other parts of the world may already be on the rise.

A Bank of America Merrill Lynch survey found that global fund managers have grown more bullish on eurozone equities over the past month while fund managers’ allocation to emerging market stocks reached a 10-month high in March.