DOW

12,734.63  -22.33 -0.18%

By: JeeYeon Park


CNBC.com Writer

Stocks finished lower in thin trading Thursday following a disappointing new home sales report and as earlier enthusiasm faded over the Fed's decision to hold interest rates near zero until at least 2014

The Dow Jones Industrial Average slipped 22.33 points, or 0.18 percent, to close at 12,734.63, led by AT&T [T 29.45 -0.76 (-2.52%) ] and H-P [HPQ 27.99 -0.33 (-1.17%) ].




The S&P 500 fell 7.60 points, or 0.57 percent, to finish at 1,318.45. The Nasdaq declined 13.03 points, or 0.46 percent, to end at 2,805.28.

Despite the day's losses, all three major averages are on pace for their fourth straight week of gains, for the first time since December 2010.

The CBOE Volatility Index, widely considered the best gauge of fear in the market, ended above 18.

In addition to keeping rates near zero, the Fed also took the unusual and historic step of setting an inflation target of 2 percent, when it released its economic forecast and said it will maintain its highly accommodative stance to support the recovery.