Wall Street closed higher Wednesday, holding on to its gains after the Federal Reserve kept short-term interest rates steady, as expected, but left the door open to additional rate hikes.
NEW YORK (AP) — Wall Street closed higher Wednesday, holding on to its gains after the Federal Reserve kept short-term interest rates steady, as expected, but left the door open to additional rate hikes.
The Federal Open Market Committee said it is seeing a continuing moderation in economic growth, partly reflecting the cooling of the housing market. It added that inflation pressures seem likely to moderate over time, but said some inflation risks remain.
“The extent and timing of any additional firming that may be needed to address these risks will depend on the evolution of the outlook for both inflation and economic growth, as implied by incoming information,” the Fed said in its policy note.
Stocks were already higher before the Fed announcement, rebounding from Tuesday’s losses on news Wednesday that Oracle Corp.’s quarterly profit rose 29 percent and Morgan Stanley also had a strong quarter.
The Fed’s move “sets a great stage for better market performance going into the end of the year, although the market may need to take a breather for the next day or two,” said Steve Neimeth, senior portfolio manager for AIG SunAmerica Asset Management.
In afternoon trading, the Dow Jones industrial average gained 72.28, or 0.63 percent, to 11,613.19.
Broader stock indicators were higher. The Standard & Poor’s 500 index rose 6.87, or 0.52 percent, to 1,325.18, and the Nasdaq composite index, lifted higher by Oracle’s news, rose 30.52, or 1.37 percent, to 2,252.89.
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