US market closes with gains as investors breathe relief after Fed meeting

ANKARA

US stock markets closed with gains Wednesday as investors breathed a sigh of relief after the Federal Reserve's critical meeting came to an end, with the results much in line with expectations.

The Dow Jones Industrial Average soared 383 points, or 1.08%, to 35,927.

The S&P 500 jumped 75 points, or 1.63%, to 4,709, posting its second-highest closing this year.

The Nasdaq jumped 327 points, or 2.15%, to 15,565.

The VIX volatility index reversed course as markets calmed after the Fed. The fear index plummeted 13% to 19.02.

The dollar index was down 0.22% to 96.36, but the yield on 10-year US Treasury notes rose 1.9% to 1.467%.

Precious metals reversed course, with gold adding 0.42% to $1,778 per ounce and silver rising 0.64% to $22.08.

Crude prices were up around 1%, with Brent crude trading at $74.45 per barrel and US benchmark West Texas Intermediate crude at $71.58.

The Fed removed the word “transitory” from describing inflation, saying it will conclude tapering faster by doubling its asset purchases and also signaled three rate hikes for 2022 to tame record high inflation.

The decisions were widely expected by investors, and they have already been priced in the markets during the last two weeks, after Fed Chair Jerome Powell first made the signals during his testimony in the Senate on Nov. 30, when he shifted his dovish stance to a hawkish tone.