US stocks rose at Wednesday’s close after the Federal Reserve kept interest rates unchanged, within a range of 3.75 to 4 percent, according to Reuters.
The decision matched investor expectations, with ten members in favor and two dissenting in support of raising rates by 25 basis points. The central bank also improved its assessment of the economy but confirmed that inflation remains elevated.
For his part, Federal Reserve Chair Kevin Warsh indicated the bank’s readiness to act. He explained that gathering additional economic data would help determine the appropriate path for monetary policy.
US stock gains and anticipation of upcoming data
On the indices front, the S&P 500 rose by 0.33 percent. The Nasdaq climbed 0.32 percent, while the Dow Jones gained 0.24 percent.
Meanwhile, the “Fed Watch” tool showed the probability of a December rate hike rising to 87.4 percent.
As a result, investors are awaiting personal consumption expenditure data and the preliminary estimate of third-quarter GDP, looking for new signals on the direction of inflation and growth.
At the same time, corporate earnings supported market sentiment after 200 companies listed on the S&P 500 reported their quarterly results. More than 84 percent of them exceeded analysts’ expectations, according to data from the London Stock Exchange Group cited in the report.
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