Wall Street closes higher after Fed rate decision

NEW YORK (AA) – Wall Street closed with gains on Wednesday after the Federal Reserve announced it was keeping its benchmark interest rate unchanged.

The Dow Jones rose 163 points to end the day at 18,293 and the S&P 500 was up 23 points at 2,163. The Nasdaq increased 53 points to finish the day at 5,295.

Investors gave out a sigh relief and took a buying position in the market after the Fed did not make a rate hike in its much anticipated September meeting.

However, the Fed Chair Janet Yellen said in a press conference after the decision that it would be "appropriate" to make a rate hike before the end of this year.

The central bank could still make a rate hike in one of its November or December meetings.

Any hawkish statement or signals favoring a rate hike in the following weeks or month could cause sudden declines in the stock market, analysts warn.