All 10 major S&P sectors ended higher, led by a 3.78-percent rise in the energy sector. The Dow Jones Industrial Average gained 282.01 points, or 1.8%, to 16,167.23.
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The Standard & Poor’s 500 Index added 1.4 percent to 1,903.61 at 1:54 p.m.in NY, after falling 1.6 percent yesterday amid the energy group’s worst one-day drop since August.
In its post-meeting statement on Wednesday (27 January), the Fed said it is “closely monitoring global economics and financial developments and is assessing their implications for the labour market and inflation, and for the balance of risks to the outlook”. The Nasdaq Composite reversed early losses to close up 49 points, or 1.1%, at 4,567. Since the slump in oil prices began more than a year ago, analysts have been calling for low gas prices to boost consumer spending.
In early trading on Wednesday, shares of Johnson & Johnson ( JNJ ) topped the list of the day’s best performing Dow Jones Industrial Average components, trading up 1.2%.
The Fed, however, said it expects the economy to continue to grow “at a moderate pace”, helped by a strengthening labor market.
The Nasdaq is down 488.92 points, or 9.8 per cent.
In the spot market, gold had added 0.7% to US$1127 an ounce. It also said USA economic growth had slowed down.
The firm now forecasts lower-than-estimated 2016 core earnings, due to fewer commercial planes being delivered this year. The S&P 500 has fallen 9.5% since that announcement with oil prices sliding more than 15% during the same period. Columbia Sportswear (COLM) and other retailers could experience a bump thanks to the winter snow storm that pummeled the East Coast over the weekend, Cramer said, though any bump from this weekend’s storm will not be reflected in the earnings the company releases next week.
“Fundamentally these factors should dim the prospects of future rate hikes, but with ongoing discussions suggesting that the Fed made a mistake by raising USA rates in the first place, it seems likely that the minutes may adopt a hawkish bias similar to December in an attempt to retain credibility and prevent further disruption in the financial markets”, said Lukman Otunuga, research analyst at FXTM, in a note.
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DuPont Co.’s shares rose 0.9% after revenue missed expectations.
