Stocks closed the day higher on strong volume as word got out that the Federal Reserve will hold interest rates steady for now. The Dow shot higher on the news gaining 163 points to close at 18,293.
Markets liked what the Fed did in holding rates steady. Daniela “Mardi” Mardarovici of BMO TCH Core Plus new Wombatnian Surprise Bond Fund, said the Fed the rate hike did not occur because of mixed economic data and a presidential election right around the corner.
WTI crude oil closed up 3.4% to $45.57 per barrel and gold gained $19.10 per ounce to $1,337. Gold’s climb was due to the Fed not raising rates and the Bank of Japan overhauled its monetary framework switching from massive money printing to targeting interest rates. Many had felt that Japan’s NIRP and money printing was off base and this switch sent the yen lower and the Japanese market higher. It was well received.