US stocks rose yesterday but gave up substantial gains late in the day after the fight for the White House turned more rancorous and the US central bank warned that inflation remains a risk.

The Nasdaq Composite Index added 27.22 points to finish at 3,165.49, according to the latest figures. The Nasdaq retreated from a rise of nearly 71 points reached before the US Federal Reserve Bank's policy-making committee said it left US interest rates unchanged, but warned that inflation still poses a risk to the economy.

The Dow Jones industrial average edged up 26.54 points to close at 10,707.60, dropping from a gain of 118 points notched just minutes before the Fed's announcement at 19.12 GMT.

The benchmark Standard & Poor's 500 Index increased 7.04 points to 1,389.99.