Dow rise more than 300 points as Fed indicates it’s not ready to withdraw monetary stimulus yet. U.S. stocks rebounded on Wednesday after the Federal Reserve said it doesn’t see an imminent rollback of the monetary stimulus.
The Dow Jones Industrial Average jumped 338.48 points, or 1%, to 34,258.32, breaking a four-day losing streak. The blue-chip Dow rose 520 points earlier in the day. The S&P 500 advanced nearly 1% to 4,395.64. The energy sector surged 3.2%. The Nasdaq Composite climbed 1% to 14,896.85.
The Fed has not revealed a specific timeline on when it may start moderating its monthly bond purchases.
Major averages have reported losses for the month of September. The S&P 500 ended down 2.8% so far in September, including a 1.7% drop on Monday for its worst day since May. Major averages failed with the Dow and S&P 500 closing in the red for the fourth day in a row. The Dow tumbled about 3.1% in September.
Devon Energy jumped 6.8%, APA rose nearly 7.2%. Diamondback Energy, Hess, and Marathon Oil all surged more than 5%. China-exposed Wynn Resorts rose nearly 2.6%.
“The market is already pricing in tapering now and have promptly turned their attention to the date of eventual rate lift-off and the pace of rate hikes which, if anything, is a little more modest than markets had feared,” said Seema Shah, chief strategist at Principal Global Investors.
FedEx shares declined by more than 9%. FedEx also lowered its forecast for the full year.