US STOCKS-Wall St climbs as Fed puts Dec rate hike in play

miércoles 28 de octubre de 2015 17:08 GYT
 

* Financials lead sector gains, utilities lead losses

* Apple rises after strong results

* Indexes up: Dow 1.1 pct, S&P 1.2 pct, Nasdaq 1.3 pct (Updates with GoPro down after the bell)

By Caroline Valetkevitch

Oct 28 (Reuters) - U.S. stocks ended sharply higher on Wednesday after a volatile session as the Federal Reserve gave a vote of confidence in the U.S. economy by signaling a December interest rate hike was still on the table.

S&P financials, which benefit from higher borrowing rates, shot up following the Fed statement and led sector gains. The financial index ended up 2.4 percent, its biggest percentage gain in seven weeks. The KBW Nasdaq regional bank index jumped 4.1 percent.

S&P utilities, which tend to do worse when interest rates are rising, fell 1.1 percent and led S&P sector declines.

The Fed left rates unchanged, as expected, and, in a direct reference to its next meeting, put a December rate hike firmly in play. It also downplayed global economic headwinds in its statement.

Stocks initially sold off following the statement, with the S&P 500 erasing close to a 1 percent gain, but quickly rebounded to end at the day's highs as investors saw the statement as a sign the Fed has confidence the U.S. economy can sustain a rate hike.   Continuación...