NEW YORK (CNN/Money) - U.S. stocks showed little response Tuesday afternoon to news that the Federal Reserve has opted to keep interest rates unchanged, as was widely expected.

Prior to the 2:15 p.m. ET announcement, the Nasdaq composite (up 25.67 to 1392.81, Charts) was up about two percent, while the Dow Jones industrial average (up 61.77 to 8535.18, Charts) and Standard & Poor's 500 index (up 8.20 to 900.20, Charts) both rose more modestly.

Stocks drifted five to ten points lower following the news, but by 2:20 had returned to right where they were before the announcement.

The central bank opted to keep the federal funds rate target -- an overnight bank lending rate -- unchanged at 1.25 percent, a 40-year low, and keep the bias at "neutral," a stance indicating that the risks of both recession and inflation are evenly balanced.

After surprising market participants by cutting interest rates by a half-percentage point at its last meeting, an acknowledgement of the weakness in the economy, the Federal Reserve was largely expected to hold rates steady today.