US Stocks Higher, Joining Global Rally After Fed Decision

NEW YORK, (UrduPoint / Pakistan Point News -22nd Sep,2016) - Wall Street stocks rose early Thursday, joining a global equity rally after the US Federal Reserve decided to keep interest rates low. Fed Chair Janet Yellen Wednesday described the US economy as improving, but said she wanted to see more evidence of strength before hiking rates.

"There was no rate hike, there was the reminder that policy rates are apt to remain low, and stocks rallied on the happy thought that a half-full punch bowl will be kept on the table," said Briefing.com analyst Patrick O'Hare.

About 35 minutes into trade, the Dow Jones Industrial Average stood at 18,431.18, up 0.8 percent. The broad-based S&P 500 gained 0.7 percent to 2,177.50, while the tech-rich Nasdaq Composite Index advanced 0.

6 percent to 5,325.59.

Petroleum and metals producers rose as commodity prices rallied following the Fed decision. Oil producers Apache and Devon Energy both added more than one percent, while aluminum producer Alcoa jumped 2.5 percent and US Steel climbed 5.1 percent.

Other gainers included Amazon, up 1.4 percent and Apple and Google parent Alphabet, both up 0.9 percent. Drug maker Mylan rose 2.2 percent after chief executive Heather Bresch defended the company against tough questioning in a congressional hearing on price increases of EpiPens, which are used to counter allergic reactions.

Software company Red Hat jumped 5.3 percent as second-quarter net income rose 14.4 percent to $58.8 million.