Major Averages Close Sharply Higher In Reaction To Fed Statement

(RTTNews) - With traders reacting positively to the Federal Reserve's monetary policy announcement, stocks moved sharply higher during trading on Wednesday. The Nasdaq briefly climbed back above 5,000 but gave back some ground going into the close.

The rally on Wall Street came as traders seemed to view the Fed's statement as dovish regarding the outlook for interest rates.

Reflecting broad based buying interest, most of the major sectors moved notably higher in reaction to the Fed announcement.

Gold stocks posted particularly strong gains, however, with the NYSE Arca Gold Bugs Index surging up by 5 percent. The strength in the sector came as the price of gold spiked higher in electronic trading.

Significant strength also emerged among energy stocks, which moved higher along with the price of crude oil. Reflecting the strength in the sector, the NYSE Arca Oil & Gas Index and the NYSE Arca Natural Gas Index jumped by 3.2 percent and 3.4 percent, respectively.

Utilities, steel, and commercial real estate stocks also moved substantially higher amid easing concerns about the outlook for interest rates.

Notable strength was also visible among pharmaceutical, housing, and computer hardware stocks, while brokerage stocks were among the few groups to buck the uptrend.

The major averages all ended the day firmly in positive territory. The Dow jumped 227.11 points or 1.3 percent to 18,076.19, the Nasdaq advanced 45.39 points or 0.9 percent to 4,982.83 and the S&P 500 surged up 25.14 points or 1.2 percent to 2,099.42.