U.S. stocks mixed after Fed statement

U.S. stocks traded in a narrow range on Thursday, as investors digested the U.S. Federal Reserve's policy announcement as well as economic data.

At midday, the Dow Jones Industrial Average gained 85.74 points, or 0.49 percent, to 17,411.50. The S&P 500 rose 6.16 points, or 0.30 percent, to 2,033.38. The Nasdaq Composite Index was down 9.00 points, or 0.19 percent, to 4,754.97.

The Fed kept its benchmark short-term interest rates unchanged on Wednesday as expected, noting that "global economic and financial developments continue to pose risks" to the U.S. economy.

"I am wary and have not yet concluded that we have seen a significant uptick that will be lasting," said Fed Chair Janet Yellen, at a press conference following the two-day policy meeting.

Many analysts said the stock markets would witness more volatility in the coming months, as Wall Street speculates on the Fed's next move.

The Fed's updated projections showed that policymakers expected the federal funds rate to rise to around 0.9 percent at the end of 2016, implying two quarter-percentage-point rate increases this year, down from four estimated in December.

On the economic front, in the week ending March 12, the advance figure for seasonally adjusted initial claims was 265,000, an increase of 7,000 from the previous week's revised level, the U.S. Labor Department announced Thursday.

U.S. stocks ended higher Wednesday after the Fed kept its benchmark short-term interest rates unchanged. Endite