Investing.com - U.S. stocks ended Thursday largely flat after investors locked in gains from the Federal Reserve's somewhat dovish Wednesday policy statement and sold for profits.
At the close of U.S. trading, the Dow 30 rose 0.09%, the S&P 500 index rose 0.13%, while the NASDAQ Composite index fell 0.08%.
The Volatility S&P 500 index, which measures the outlook for market volatility, was up 1.23% at 10.74.
The Federal Reserve on Wednesday left benchmark interest rates unchanged at 0.00-0.25% and cut its monthly bond-buying program to $35 billion from $45 billion in a widely expected move.
The Fed sidestepped addressing specifically how much time will elapse after its monthly stimulus program ends and when interest-rate hikes begin, with investors concluding that the Fed will take its time to tighten policy, which drew applause on Wall Street.
"It likely will be appropriate to maintain the current target range for the federal funds rate for a considerable time after the asset purchase program ends, especially if projected inflation continues to run below the Committee's 2 percent longer-run goal, and provided that longer-term inflation expectations remain well anchored," the Fed said in its Wednesday policy statement.
Profit taking cut into gains, however, while markets kept a close eye on events unfolding in Iraq.
Fighting between Iraqi security forces and Sunni insurgents continued on Thursday, while U.S. President Barack Obama said he stood ready to take "targeted and precise" action to control the violence, while reports that Iran is also ready to battle the insurgency sparked fears of a civil war.
Elsewhere, upbeat U.S. data kept stock indices largely in positive territory.
In a report, the Federal Reserve Bank of Philadelphia said that its manufacturing index rose to an eight-month high of 17.8 in June from 15.4 in May. Analysts had expected the index to dip to 14.0 in June.
The data came after the U.S. Department of Labor said the number of individuals filing for initial jobless benefits in the week ending June 14 declined by 6,000 to 312,000 from the previous week’s revised total of 318,000. Analysts had expected jobless claims to fall by 4,000 to 314,000 last week.
In company news, supermarket chain Kroger Company (NYSE:KR) reported a better-than-expected quarterly profit and raised its outlook for full-year adjusted profits, while smartphone maker BlackBerry Ltd (NASDAQ:BBRY) shares rallied after a smaller first-quarter loss than markets were expecting.
Leading Dow Jones Industrial Average performers included UnitedHealth Group Incorporated (NYSE:UNH), up 1.63%, Chevron Corporation (NYSE:CVX), up 1.30%, and Johnson & Johnson (NYSE:JNJ), up 0.95%.
The Dow Jones Industrial Average's worst performers included J P Morgan Chase & Co (NYSE:JPM), down 0.83%, Nike Inc (NYSE:NKE), down 0.76%, and Dupont Fabros Technology Inc (NYSE:DFT), down 0.74%.
European indices, meanwhile, ended the day higher.
After the close of European trade, the DJ Euro Stoxx 50 rose 1.07%, France's CAC 40 rose 0.72%, while Germany's DAX rose 0.74%. Meanwhile, in the U.K. the FTSE 100 rose 0.44%.