US stocks close higher after Fed skips rate hike

By Ovunc Kutlu

ISTANBUL (AA) - Major stock exchanges in the US closed with gains on Wednesday after the Federal Reserve skipped a rate hike for the third time this year.

The Dow Jones rose 221 points, or 0.67%, to finish the day at 33,274, while the S&P 500 jumped 44 points, or 1.05%, to 4,237.

The Nasdaq, meanwhile, soared 210 points, or 1.64%, to close the session at 13,061.

Earlier, Fed skipped an interest rate hike, as widely expected, and kept its federal funds rate unchanged between the 5.25% - 5.5% target range, still the highest level in 22 years.

Chair Jerome Powell said in a post-meeting press conference that members of the Federal Open Market Committee (FOMC) have not yet made any monetary policy decisions about future meetings, but they are focused on how long its monetary policy will remain restrictive.

The VIX volatility index, also known as the fear index, dove 7.1% to 16.81. The 10-year US Treasury yield lost 2.4% to 4.757%.

The dollar index was flat at 106.69, while the euro was steady at $1.0574 against the greenback.

Precious metals were mixed, with gold losing 0.3% to $1,978 an ounce but silver rising 0.1% to $22.87.

Oil prices decreased around 0.1%, with global benchmark Brent crude at $85.00 per barrel and US benchmark West Texas Intermediate at $82.75.