U.S. stocks rallied after the Federal Reserve kept interest rates steady even as the economy showed signs of improving, removing at least for six weeks an obstacle for equities that rekindled volatility this month.
Shares surged as the central bank opted to wait for further evidence of stronger inflation before boosting borrowing costs, while officials signaled growth remains on track to achieve their goals. Utilities, energy and raw-materials producers -- among the year’s best performers -- jumped the most in two months. Boeing Co. and Caterpillar Inc. increased 2.2 percent to lead industrials.
The S&P 500 Index gained 1.1 percent to 2,163.12 at 4 p.m. in New York, the most on a Fed day since December, when it raised rates for the first time in a decade and the market ended 1.5 percent higher. The Dow Jones Industrial Average added 163.74 points, or 0.9 percent, to 18,293.70, and the Nasdaq Composite Index rose 1 percent. About 7.6 billion shares traded hands on U.S. exchanges, 12 percent above the three-month average.
Asian stocks rallied for a sixth day, South Korea’s won strengthened and regional bonds rose after the Federal Reserve damped the outlook for U.S. interest-rate increases.
Raw-materials producers were the biggest gainers on an MSCI index of Asian shares outside of Japan, where markets are shut for a holiday. The S&P 500 Index advanced on Wednesday as the Fed left rates unchanged and scaled back its projections for hikes in 2017 and beyond. The won jumped the most since June and the yen rose to this month’s high as the dollar extended losses from the last session. New Zealand’s 10-year bonds surged by the most since June after its central bank said further policy easing will be needed. Crude oil gained following a plunge in U.S. stockpiles.
The MSCI Asia Pacific excluding Japan Index was up 0.9 percent as of 9:24 a.m. Tokyo time as benchmarks climbed in Australia, New Zealand and South Korea.
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