Traders are seen working on the New York Stock Exchange (NYSE). Spencer Platt/Getty Images
On Wednesday, the Dow Jones Industrial Average ended a four-session losing streak.
The Fed's suggestion that the economy is strong enough to withstand any policy changes led to stocks rising.
According to the Fed, it anticipates that asset purchases will be tapered "soon".
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Stocks rose Wednesday after the Federal Reserve stated that it would "soon” reduce stimulus measures. This suggests that the largest economy in the world is able to tolerate less support from the central banking.
The Dow Jones Industrial Average rose about 340 points, breaking a streak of four consecutive losses. Meanwhile, the S&P 500 gained following three of its four previous sessions of declines.
The Federal Open Market Committee maintained interest rates close to zero and kept the amount of its emergency asset purchases stable. Officials have indicated that they are closer to cutting policy aid due to the economic recovery since the pandemic.
"If there is no progress as expected, the Committee considers that moderation of asset purchases may be necessary," the central bank stated.
Here are the US indexes at 4:00 PM on Wednesday.
Dow Jones Industrial Average: 34.258.32, an increase of 1% (338.48)
Nasdaq Composite: 14,896.85 - Up 1.02%
"We were not surprised to see the Fed tee-up November as the likely start of tapering, as they previously highlighted the higher than expected inflation numbers and were only waiting until the job market improved before beginning to reduce their bond buying," wrote Chris Zaccarelli in a Wednesday note.
He stated that although there might be some additional turmoil this fall, the US economy is still strong and any dips would be worthwhile buying. "Recession appears more than a decade away at this point and the fundamentals remain sound."
Facebook dropped in the markets after Apple made changes to its privacy policy in its most recent iOS update, causing negative effects for advertisers.
According to VandaTrack data, Monday's Evergrande-driven selloff saw retail investors invest $1.9 billion in US stocks. This was the fourth largest day of net purchases since the outbreak.
Dogecoin supporters stormed AMC CEO Adam Aron's Twitter poll asking whether the theater chain should take the meme-token for payment.
The price of gold fell 0.3% to $1.768.27 an ounce. The yield on the US 10-year Treasury Note fell to 1.32%. As prices rise, bond yields decrease.
Oil prices popped higher. West Texas Intermediate crude oil rose 2.7% to $72.17 a barrel. Brent oil, the international benchmark for oil, rose 2.4% to $76.13.
Bitcoin traded at $43,410, up 6.9%
