US Stocks End Higher on Fed Statement

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US Stocks End Higher on Fed Statement

US stocks ended higher on a measured statement by the Federal Reserve which left the lending rates unchanged, and gave no clear indication on the timing of the country’s first rate hike in almost a decade.

The Dow Jones Industrial Average ended 121.2 points or 0.7% higher 17,751.59 points with more than three quarters of its components ending higher.

The S&P 500 Index added 15.32 points or 0.7% at 2,108.97 points with all ten of its key sectors ending higher.

The technology heavy Nasdaq Composite added 22.53pointrs or 0.4% at 5,111.73 points

“We’ve had some good earnings reports today and transports stocks are rising for the second day in a row, no doubt thanks to UPS profits. We view that as a positive,” Peter Cardillo, chief market economist at Rockwell Global Capital, told Market Watch.

Trading in the main indexes was choppy just after the statement with the main indexes initially shooting higher on the report but pared gains about 15 minutes later as investors digested the report only to resume their rally.,

The Federal Reserve policymakers voted overwhelmingly during their two day policy meeting to keep the interest rates unchanged reiterating yet again the need for data showing solid gains in the economy to necessitate a hike.

The Fed however cited the strong labor market an indication that the economy was moving n the right direction but expressed concern over the low inflation rate.

The major Indexes ended higher or the first time in five sessions on Tuesday on solid gains in transportation, energy and industrial stocks.

“There was nothing…where the Fed clarified that it would be raising rates in September,” David Donabedian, chief investment officer of Atlantic Trust Private Wealth Management, which oversees about $27 billion, told Wall Street Journal.

“If an impending issue has ever had time to be priced into the market, this is it,” he said.

To contact the reporter of the story: Samuel Rae at samuel@forexminute.com