US STOCKS-Wall St ends higher as Fed signals bond-buying taper soon

Caroline Valetkevitch
·2 min read

(For a live blog on the U.S. stock market, click or type LIVE/ in a news window.)

* Fed clears way to reduce monthly bond purchases soon (Updates to close)

By Caroline Valetkevitch

NEW YORK, Sept 22 (Reuters) - U.S. stocks ended sharply higher on Wednesday as investors took in stride the latest signals from the Federal Reserve, including clearing the way for the central bank to reduce its monthly bond purchases soon.

Trading was choppy, however, following the Fed's latest policy statement, in which the central bank also suggested interest rate increases may follow more quickly than expected.

Overall indicators in the economy "have continued to strengthen," the Fed said.

Bank shares rose following the news.

Stocks were already sharply higher before the statement from the Fed, with stocks bouncing back as concerns eased over a default by China's Evergrande.

Strategists said what eventually happens with tightening may be less hawkish than some expect.

“I don't think the Fed’s tightening is going to be anywhere near as hawkish as they anticipate. It’s going to be hard for them to execute on this plan as the economy slows next year,” said Joseph LaVorgna, Americas chief economist at Natixis in New York.

Unofficially, the Dow Jones Industrial Average rose 341.11 points, or 1.01%, to 34,260.95, the S&P 500 gained 41.54 points, or 0.95%, to 4,395.73 and the Nasdaq Composite added 150.45 points, or 1.02%, to 14,896.85.

Evergrande's main unit said it had negotiated a deal with bondholders to settle interest payments on a domestic bond, calming fears of an imminent default that could unleash global financial chaos.

(Reporting by Caroline Valetkevithc; additional reporting by Ambar Warrick and Medha Singh in Bengaluru; Editing by Maju Samuel and Lisa Shumaker)

  • Up next
  • Up next
  • Up next
  • Up next

Latest Stories

  • Tigers hand Twins season-worst 5th straight loss on Wenceel Pérez's walk-off single in 9th

    MINNEAPOLIS (AP) — Rookie Wenceel Pérez hit a game-ending two-out single in the ninth inning and the Detroit Tigers handed the Minnesota Twins their season-worst fifth straight loss, 5-4 on Friday night. Pérez finished with three hits, two RBIs and two runs scored. Kerry Carpenter added four hits and two RBIs for the Tigers. With the game tied at 4-all in the ninth, Twins reliever Caleb Thielbar (0-1) got the first two outs before giving up a single to Parker Meadows. Thielbar then threw wildly

  • Phillies defeat White Sox 7-0 to extend their winning streak to four

    PHILADELPHIA (AP) — Spencer Turnbull carried a no-hit bid into the seventh inning, Alex Bohm hit a pair of three-run homers and the Philadelphia Phillies beat the Chicago White Sox 7-0 on Friday night to extend their winning streak to four. Chicago has lost seven of eight and 12 of 14, dropping to a major league-worst 3-16. The White Sox have been shut out seven times and are hitting a major league-low .190. Turnbull (2-0) didn’t allow a hit until Gavin Sheets singled into right field with one o

  • Q1 2024 American Express Co Earnings Call

    Q1 2024 American Express Co Earnings Call

  • Tennessee Volkswagen employees vote to join United Auto Workers union

    CHATTANOOGA, Tenn. (AP) — Employees at a Volkswagen factory in Chattanooga, Tennessee, have voted overwhelmingly in favor of joining the United Auto Workers union, boosting its nationwide effort to organize nonunion factories. The workers voted 2,628 to 985 for the UAW, Volkswagen said in a statement, giving the union its first victory in a quest to sign up workers at nonunion plants in Southern states largely owned by foreign-based automakers. It was the union’s third try at organizing 4,300 Vo

  • Celtics-Heat preview: Does Miami have a chance against Boston without Jimmy Butler?

    We break down the first-round series between the Boston Celtics and Miami Heat and make our prediction.

  • California bill to ban use of non-disclosure agreements in lawmaking process faces uncertain path

    A proposal to prohibit the use of non-disclosure agreements during legislative negotiations in California has officially been written into a bill but faces uncertainty over whether it will move forward with a key legislative deadline approaching. Republican Assemblymember Vince Fong on Thursday officially amended AB 2654 to ban lobbyists, lawmakers, and other government officials from signing, requesting or drafting NDAs in the drafting, negotiation, discussion, or creation of proposed state laws. A violation would result in a misdemeanor penalty. The proposal would update the state's Political Reform Act of 1974, which would require a two-thirds vote from the Legislature.

  • Embattled Kharkiv residents face regular power outages as Russia grinds down energy infrastructure

    Russia is exploiting enduring air defense shortages in Kharkiv, Ukraine’s second largest city, to pummel its energy infrastructure, terrorize its residents and those in its rural surroundings. Nearly 200,000 city dwellers are without power, while 50% of the region suffers from outages in the wake of Moscow’s intensified air campaign starting in late March, according to officials. (AP video shot by: Vasilisa Stepanenko)

  • Red Sox vs. Pirates Highlights

    Rob Refsnyder and the Red Sox take on Andrew McCutchen and the Pirates on April 19, 2024

  • ‘RuPaul’s Drag Race’ Crowns Season 16’s Winner

    SPOILER ALERT: This contains major spoilers for the finale of “RuPaul’s Drag Race.” Banana fever reigns supreme after “RuPaul’s Drag Race” crowned America’s next drag superstar. Season 16 winner Nymphia Wind snatched the crown from fellow finalists Plane Jane and Sapphira Cristál. With her win, Nymphia makes “Drag Race” history as the first-ever Taiwanese queen and the …

  • All the Reasons Why RFK Jr. Is Nothing Like His Father

    Photo Illustration by Luis G. Rendon/The Daily Beast/Getty ImagesRobert F. Kennedy Jr. may come from a close-knit political family but a side-by-side comparison of him and his father Robert F. Kennedy Sr. shows how different they are. Words by Nell Scovell/Infographic by Luis G. Rendon/The Daily Beast Words by Nell Scovell/Infographic by Luis G. Rendon/The Daily Beast Words by Nell Scovell/Infographic by Luis G. Rendon/The Daily Beast Read more at The Daily Beast.Get the Daily Beast's biggest sc

  • Former champion Jinder Mahal leaves WWE, other stars surprisingly released on Friday

    Some WWE stars announced their departure during "Friday Night Smackdown" on April 19, including Jinder Mahal.

  • 30 Countries that Receive the Most Aid from UNDP

    In this article, we take a look at 30 countries that receive the most aid from UNDP. If you would like to skip our detailed analysis of UNDP funding, you can directly go to the 5 Countries that Receive the Most Aid From UNDP. Understanding UNDP Aid The United Nations Development Programme offers aid to […]

  • 20 Affordable, Promising Cities to Buy Real Estate in 2024

    In this article, we will be covering the 20 affordable, promising cities to buy real estate in 2024. If you wish to skip our detailed analysis, you can move directly to the 5 Affordable, Promising Cities to Buy Real Estate in 2024. US Real Estate Affordability: A Brief Recap The US housing market has long […]

  • 20 Best DocuSign Alternatives to Explore in 2024

    In this article, we will take a look at the 20 best DocuSign alternatives to explore in 2024. If you want to skip our detailed analysis, you can go directly to 5 Best DocuSign Alternatives to Explore in 2024. DocuSign: A Leading Name in the E-sign Industry DocuSign, Inc. (NASDAQ:DOCU) is a leading electronic signature […]

  • Meghan Markle Isn’t Alone: How the Super-Rich Fell in Love With Jam-Making

    Charles McQuillan / GettyLord Anthony Ardee could tell Meghan Markle a thing or two about the fine art of making—and marketing—posh jam. Anthony is the 15th generation of his family to manage their estate, Kilruddery House near Dublin, Ireland, which boasts a thriving farm shop in the grounds of the house’s magnificent gardens, laid out in the 17th Century, which has been selling jam and other preserves for several years.He told The Daily Beast: “Jam is not new, and we began making it for the sa

  • Taylor Swift Enlists “Dead Poets Society” Actors Ethan Hawke and Josh Charles for ‘Fortnight’ Music Video

    Hawke is reportedly a self-proclaimed Swiftie!

  • 7 of the best things to do in Hurghada, Egypt – from exploring coral reefs to venturing into the desert

    How to keep yourself busy while taking in the beauty of one of the Red Sea’s most popular tourist resorts

  • Takeaways from Butler-less Heat’s playoff-clinching win over Bulls and a look at what’s ahead

    The Heat overcame the absences of Jimmy Butler and Terry Rozier to keep its season going with a win over the Bulls on Friday night. Takeaways and details ...

  • Fact or Fiction: Jets quarterback Aaron Rogers facing lifetime suspension?

    An ad popping up on Facebook says Jets quarterback Aaron Rogers is facing a lifetime suspension.

  • Republicans Just Found a Loophole to Answer Their Abysmal Fundraising

    Photo Illustration by Erin O’Flynn/The Daily Beat/Getty ImagesAfter a bruising few months of humiliating reports, Donald Trump’s re-election team has finally produced a round of positive fundraising headlines, showing, they said, that the campaign and Republican National Committee’s abysmal donor woes were in the rearview.Republicans had finally turned the corner, and they were back in the driver’s seat.But a closer look at the numbers behind those numbers suggests that, once again, the boasts m