Stocks return to positive territory after volatile Wednesday trade.
U.S. stocks traded firmly higher on Thursday, as pro-growth optimism lifted investor sentiment after the Federal Reserve gave markets very little to chew on.
The large-cap S&P 500 Index (NYSEARCA:SPY) climbed 0.3% to close at 2,914.00, with seven of 11 primary sectors recording gains. Utilities and the newly created communication services sectors were the strongest contributors to the growth.
The Dow Jones Industrial Average (NYSEARCA:DIA) rose 54.56 points, or 0.2%, to 26,439.93.
Meanwhile, the technology-focused Nasdaq Composite Index (NYSEARCA:QQQ) surged 0.7% to finish at 8,041.97.
A measure of implied volatility known as the CBOE VIX (NYSEARCA:VXX) declined on Thursday, virtually offsetting the previous session’s sudden advance. The so-called “fear index” fell 3.4% to 12.45 on a scale of 1-100.
Share prices bounced back sharply after falling in the final hour of Wednesday’s session. The loss came after the Federal Reserve raised interest rates for the eighth time since late 2015 but dropped language that described monetary policy as “accommodative.”
The Fed is expected to hike rates again in December, according to Fed Fund futures prices.
In economic data, U.S. GDP growth was confirmed at 4.2% in the second quarter, matching previous forecasts. Meanwhile, durable goods orders surged 4.5% in August, far outpacing estimates of 2%, the Department of Commerce reported Thursday.
The Final Word: September is shaping up to be a solid month for Wall Street. All major indexes are on track for solid gains on the heels of pro-growth optimism.