Asset manager stocks resume rally after Fed news

Shares of asset management firms rallied Tuesday, pausing briefly following the Federal Reserve's announcement on rates before resuming their upward path.

The Fed decided not to cut a key interest rate as many investors had expected, keeping its target for the federal funds rate unchanged at 2 percent.

The announcement temporarily halted the recovery in asset manager stocks following Monday's declines in the aftermath of the Wall Street financial shake-up, sending them slightly downward. But all headed back upward within minutes, leaving only AllianceBernstein Holding LP in negative territory for the session.

Brookfield Asset Management Inc., which had dropped more than 4 percent to a two-year low in morning trading, climbed into positive ground after the announcement and was up 20 cents at $26.85.

Legg Mason Inc. jumped $2.52, or 7 percent, to $38.80 late in the session. Piper Jaffray Cos. climbed $2.93, or 9 percent, to $35.63.

Shares in AllianceBernstein, a New York-based investment management and mutual fund company, were down 61 cents to $41.36 after erasing most of a morning loss that took the stock to a three-year low.