Stocks finished higher, led by materials (+2.3%) and energy (+1.4%) stocks, as crude oil surged and investors maintained their positive view of the Fed's announcements yesterday.
The Dow briefly added more than 200 points before settling with a 155-point gain, swinging the index into the green for the year, while the S&P briefly touched positive territory for the year before slipping back; the Nasdaq is still down 4.6% YTD.
"We've hit the reset button" with the Fed finally aligned with market expectations, said TD Ameritrade chief strategist JJ Kinahan, adding that focus has shifted to earnings season and "there's a lot of hope" given FedEx's better than expected quarterly report.
U.S. crude oil futures settled 4.5% higher at $40.20/bbl, in part benefiting from a weaker dollar.
Trading volume was lower than average with a shade over 1B shares changing hands at the NYSE, continuing the light activity of recent sessions.
U.S. Treasury prices rose, as the yield on the benchmark 10-year note fell 4.6 bps to 1.892% and the two-year yield lost 1.2 bps to 0.863%, its lowest level in two weeks.
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