Major Averages Close Sharply Higher In Reaction To Fed Statement

(RTTNews) - Stocks moved sharply higher over the course of the trading on Wednesday, partly offsetting the steep losses posted over the past few sessions. A positive reaction to the Federal Reserve's monetary policy statement contributed to the rebound.

While most of the major sectors moved to the upside, gold stocks posted particularly strong gains on the day. The NYSE Arca Gold Bugs Index surged up by 5.3 percent after ending the previous session at its lowest closing level in over a month.

The rally by gold stocks came even though gold for February delivery inched up only $0.20 to $1,194.50 an ounce and turned lower in electronic trading.

Energy stocks also saw substantial strength on the day, bouncing further off their recent lows. An increase by the price of crude oil contributed to the strength in the sector, with crude for January delivery climbing $0.54 to $56.47 a barrel.

Reflecting the strength in the energy sector, the NYSE Arca Natural Gas Index and the NYSE Arca Oil & Gas Index jumped by 5 percent and 4.8 percent, respectively.

Considerable strength was also visible among biotechnology stocks, as reflected by the 3.6 percent gain posted by the NYSE Arca Biotechnology Index. ImmunoGen (IMGN) posted a standout gain, soaring by 9.2 percent.

Steel, railroad, computer hardware, and airline stocks also saw significant strength, reflecting the broad based buying interest.

The major averages saw further upside going into the close, ending the session near their best levels of the day. The Dow surged up 288.00 points or 1.7 percent to 17,356.87, the Nasdaq soared 96.48 points or 2.1 percent to 4,644.31 and the S&P 500 jumped 40.15 points or 2 percent to 2,012.89.