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NEW YORK (AP) — Traders put their September stock rally on hold and moved into Treasurys and gold Wednesday, a day after the Federal Reserve said it was ready to take more action to boost the economy.
The Dow Jones industrial average fell 21 points in afternoon trading.
With no new economic data out Wednesday and the Fed's announcement late Tuesday having a bigger impact on the bond and currency markets, Bob Auer, portfolio manager of the Auer Growth Fund, said it was natural for stocks to pause.
Major indexes have been on a tear this month as economic reports have consistently indicated the economy continues to grow, albeit slowly.
"People are saying, 'I've got some profits, let's book 'em,'" Auer said. Entering Wednesday, the Dow had risen 13 of the past 15 days and climbed 7.5 percent so far in September.
The Fed didn't announce specific actions to strengthen the economy, but investors interpreted its statement as a signal that the central bank could step up its bond-purchasing program down the line.
Investors had little incentive to move more money into stocks, so they turned their focus to bonds and gold. Treasurys rose again, pushing their yields lower, and gold climbed to another record.
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