US Stocks Higher After Fed Holds Rates

(Close): US stocks veered downwards, then surged higher after the Federal Reserve held interest rates, but failed to rule out a December rate rise.

US stocks higher after Fed

The Dow Jones Industrial Average closed up 198.09 points or 1.13% at 17,779.52, while the wider S&P 500 index added 24.46 points or 1.18% to 2,090.35.

The tech-focused Nasdaq index rose 65.54 points or 1.3% to 5,095.69.

Shares in Apple rose 4.1% to $119.27 after the tech giant released another strong set of results late on Tuesday.

Strong sales of iPhones helped Apple to report a 22% rise in fourth-quarter revenues to $51.5bn.

Shares in insurance group AIG rose 4.9% after activist investor Carl Icahn wrote an open letter to the company saying it should split itself into three. Mr Icahn also disclosed that he held a “large stake” in AIG.

About the Author