|Published : 22 Sep 2016, 10:17:41|
US stocks climb on Fed inaction
US stocks racked up gain on Wednesday after the US Federal Reserve kept interest rates unchanged, for now leaving intact the low-rate environment that has helped underpin the bull market.
The Nasdaq closed at a record high.
The central bank strongly signalled it could still tighten monetary policy by the end of this year as the labor market improved further.
Earlier on Wednesday, global markets reacted to the Bank of Japan's abrupt shift to targeting interest rates on government bonds to achieve its elusive inflation target.
The Dow Jones industrial average rose 163.74 points, or 0.9 per cent, to 18,293.7, the S&P 500 gained 23.36 points, or 1.09 per cent, to 2,163.12 and the Nasdaq Composite added 53.83 points, or 1.03 per cent, to 5,295.18.
All 11 major S&P sectors were finished in positive territory. Energy shares were the best performing sector, up 2.1 per cent, as oil prices rose.
The benchmark S&P 500 is up 5.8 per cent.
FedEx shares gained 6.9 per cent after the package delivery company's profit report.
NYSE advancing issues outnumbered decliners by a 6.26-to-1 ratio; on Nasdaq, a 2.65-to-1 ratio favored advancers.
The S&P 500 posted 16 new 52-week highs and 2 new lows; the Nasdaq Composite recorded 86 new highs and 28 new lows, according to a news agency report.