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Stocks Mixed: Economy Surges, Fed Holds Off Interest Rate Hikes

Stocks wavered on Wednesday after the government reported the economy bounced back at a faster-than-estimated clip in the second quarter and the Federal Reserve continued its course of slowing asset purchases while sticking with its ultra-easy monetary policy. The Dow Jones Industrial Average closed unofficially 31 points down, but the S&P 500 was marginally higher and the Nasdaq rose 20 points. The Commerce Department reported the U.S. economy grew 4 percent in the second quarter. Later, the Fed's Open Market Committee cut another $10 billion from its monthly bond buys, but left its short-term interest rate target near zero. "The bulls look at the strength in the second quarter, and the skeptics say you're getting a lot of bounce back from first-quarter weakness. The question is how do things look in the third and fourth quarters, and the answer is we don't know. A lot hinges on the employment report on Friday," said Bruce McCain, chief investment strategist at Key Private Bank.

The exchanges in 25 years 2:21

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- Kate Gibson, CNBC.com