US markets soared higher Wednesday, rebounding after a dismal October and three straight months of losses.
The Dow rose by 221 points, or 0.7%, in Wednesday trading. The S&P 500 hit a session high, and was up 1.1%. The tech-heavy Nasdaq Composite was 1.6% higher.
The Federal Reserve said it would keep interest rates between 5.25% and 5.5%, and amended language in its post-meeting statement to say that “economic activity expanded at a strong pace in the third quarter.” Previously, Fed officials wrote that the economy had grown at a "solid pace."
Fed Chair Jerome Powell said that he would not rule out another rate hike at the Fed's next meeting in December, but Wall Street seemed to brush off the fear of more economically painful hikes.
In a note to investors, Whitney Watson global co-head and co-chief investment officer of fixed income at Goldman Sachs Asset Management wrote that "the economy’s resilience has not stalled labor market rebalancing or revived wage and price pressures, suggesting disinflation will progress and indicating that the Fed will likely keep its policy unchanged into 2024."
Treasury yields, meanwhile, slumped to 4.76% on the Fed news.
In corporate news, shares of semiconductor company AMD closed 9.7% higher after the company reported strong third-quarter earnings results.
Shares of CVS dropped 0.4% even after the health care company reported an earnings beat.
WeWork plummeted by more than 47% as reports of a possibly imminent bankruptcy broke.