The Federal Reserve concluded a two-day meeting on monetary policy on Wednesday in which it left interest rates unchanged. The decision was widely expected, but the central bank upgraded its view on the economy, calling it "strong."
"It was basically a nonevent," said Eric Stein, co-director of global income at Eaton Vance. "The market was priced in for this decision. I think the Fed is still on track to raise rates in September."
Treasury yields rose ahead of the announcement, with the 10-year note yield breaking above 3 percent for the first time since June. At around 4 p.m. ET, the benchmark yield traded at 2.999 percent.
"It seems like this Fed is trying not to repeat the mistakes of the past," said Robert Tipp, chief investment strategist at PGIM Fixed Income. "Usually, toward the end of the cycle, the Fed tends to accelerate rate hikes. This Fed shows no inclination of doing that."
The Nasdaq Composite rose 0.3 percent as Apple climbed to a record high on strong quarterly results. Apple jumped more than 5 percent. Apple reported earnings and revenue for the previous quarter that topped analyst expectations.
Apple's gains gave the broader tech sector a much-needed boost after disappointing quarterly numbers from Facebook and Twitter sent it down sharply. Since July 26, tech has dropped 5.1 percent through Tuesday's close. The sector rose 1 percent on Wednesday.
ADP and Moody's Analytics said the private payrolls in the U.S. grew by 219,000 in July, more than the 185,000 gain forecast by Reuters.
July's job gains were the best since February, when 241,000 jobs were added. The report from ADP and Moody's comes ahead of the U.S. government's monthly nonfarm payrolls report, which is scheduled for release Friday at 8:30 a.m. ET.
"The ADP survey has never been a great guide to the actual payrolls figures, but there is plenty of other evidence suggesting that jobs growth has remained strong," said Andrew Hunter, U.S. economist at Capital Economics.
"Most employment surveys are at a high level, while initial jobless claims recently touched their lowest level in almost 50 years. With activity booming on the back of the fiscal stimulus, the continued strength of the labor market will keep the pressure on the Fed to continue raising interest rates," Hunter said.
contributed to this report.