U.S. stocks soared, after erasing earlier gains following the Federal Reserve’s policy meeting statement, as banks and energy companies led a rally.
Equities had advanced into the afternoon Fed statement, boosted by Apple Inc. following its better-than-expected results and by energy shares as oil surged the most in eight weeks. A signal that policy makers are still considering an interest-rate increase this year briefly undercut the gains before banks jumped on the prospects for stronger profits.
The Standard & Poor’s 500 Index rose 1.2 percent to 2,090.29 at 4 p.m. in New York, after earlier wiping out a 0.9 percent gain. The Nasdaq Composite Index increased 1.3 percent, while the Russell 2000 Index rallied 2.9 percent, its biggest gain this year.
The economy is still expanding at a “moderate” pace, Fed officials said as they left interest rates unchanged, and they will consider tightening policy at their next meeting in December without making a commitment to act this year. Even with a slower pace of recent job gains, labor market indicators show slack has diminished since early this year, the Federal Open Market Committee said.
The Fed removed a line from September’s statement saying that global economic and financial developments “may restrain economic activity somewhat,” saying only that the central bank is monitoring the international situation.
Source : Bloomberg