US STOCKS-Big thumbs up from Wall St after Fed signals patience on rates

An image of people surrounding a sheet of paper with many charts on it
Credit: Shutterstock photo

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

* Apple jumps on robust services business growth

* Boeing gains after upbeat earnings, deliveries forecast

* Indexes up: Dow 1.87 pct, S&P 1.65 pct, Nasdaq 2.10 pct (Updates with Fed announcement)

By Noel Randewich

Jan 30 (Reuters) - U.S. stocks surged on Wednesday after theFederal Reserve said it would be patient in lifting borrowingcosts further this year, reassuring investors worried about aslowing economy.

Along with better-than-feared quarterly results from AppleInc AAPL.O , the Fed's comments helped Wall Street reverse twodown days triggered by profit warnings from U.S. bellwethersthat signaled a bigger impact from a slowdown in China.

The Fed held interest rates steady, as widely expected.*:nW1N1YW001

While the Fed said continued U.S. economic and job growthwere still "the most likely outcomes," it removed language fromits December policy statement that risks to the outlook were"roughly balanced" and struck language that projected "somefurther" rate hikes would be appropriate in 2019.

Investors in recent months have become more concerned aboutthe global economy. Recent U.S. corporate results have showncompanies including Apple, Intel CorpINTC.O and CaterpillarInc CAT.N are feeling the effects of slowing expansion ofChina's economy, which has been hurt by a trade conflict withthe United States.

"They seem to be, for lack of a better term, capitulating tothe market at this point. Which is, 'we are paying attention tothe volatility, we are paying attention more to the downsiderisks more than the upside risks'," said Jason Ware, chiefinvestment officer at Albion Financial Group in Salt Lake City,Utah.

Apple shares jumped 6.5 percent after reporting a sharpgrowth in services business, easing concerns after the iPhonemaker earlier this month cut current-quarter sales forecast.*:nL1N1ZT1WM

Boeing CoBA.N gained 6.7 percent after the world'slargest planemaker forecast full-year profit and cash flow aboveanalysts' estimates amid a boom in air travel and speedier 737production.*:nL3N1ZU4JI

Following the Fed's rate announcement, all three main U.S.stock indexes extended gains from earlier in the session.

At 2:25 p.m. ET, the Dow Jones Industrial Average .DJI wasup 1.87 percent at 25,038.99 points, while the S&P 500 .SPX had gained 1.65 percent to 2,683.46.

The Nasdaq Composite .IXIC added 2.1 percent to 7,175.93.

Investors are also tracking the latest round of talksbetween Washington and Beijing that began on Wednesday, thehighest-level meeting since U.S. President Donald Trump andChinese President Xi Jinping agreed to a 90-day truce to theirtrade war in December.*:nL1N1ZU04Y

The Philadelphia Semiconductor index .SOX surged 2.9percent, while the S&P technology index .SPLRCT jumped 3.0percent.

Microsoft CorpMSFT.O and Facebook IncFB.O , set toreport after the closing bell, were up more than 2 percent.

Of the 168 S&P 500 companies that have reported results sofar, 73.2 percent have topped profit estimates, according toRefinitiv data. Advancing issues outnumbered declining ones on the NYSE by a4.29-to-1 ratio; on Nasdaq, a 2.38-to-1 ratio favored advancers.

The S&P 500 posted 18 new 52-week highs and no new lows; theNasdaq Composite recorded 23 new highs and 25 new lows. (Additional reporting by Sruthi Shankar and Shreyashi Sanyal inBengaluruEditing by James Dalgleish and Lisa Shumaker) ((; Twitter handle: @randewich (415) 6772542; Reuters

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

In This Story


Other Topics

World Markets Politics


Reuters, the news and media division of Thomson Reuters, is the world’s largest international multimedia news provider reaching more than one billion people every day. Reuters provides trusted business, financial, national, and international news to professionals via Thomson Reuters desktops, the world's media organizations, and directly to consumers at and via Reuters TV.

Learn More