Wall Street ends higher as Fed holds key rate steady

U.S. stock indexes climbed on Wednesday following the Federal Reserve's decision to keep its key interest rate unchanged, as anticipated. Investors now expect a rate increase during the December meeting. Fed Chair Kevin Warsh reiterated the central bank's readiness to act if necessary. The Dow Jones Industrial Average rose 0.19% to 52,475.10, the S&P 500 increased 0.28% to 7,743.97, and the Nasdaq Composite gained 0.27% to 26,549.85.

Analysts noted that market sentiment has grown accustomed to Warsh's approach. Financial markets now consider an 85% probability of a 25-basis-point rate hike at the upcoming meeting, up from 78.3% on Tuesday. Upcoming data, including the Commerce Department's Personal Consumption Expenditures report and third-quarter GDP figures, will influence rate hike forecasts.

Third-quarter earnings season has seen strong results, with 84% of S&P 500 companies beating expectations. Micron Technology and SK Hynix saw significant gains after SK Hynix reported a substantial profit increase. Memory chip market activity influenced stock movements, with the Philadelphia Semiconductor index surging 1.8%. Microsoft and Alphabet experienced varying reactions to their earnings reports.

Oil prices surged due to a Houthi attack on a Saudi Arabian refinery, adding to inflation concerns. Robinhood's stock declined after cryptocurrencies affected trading profits. The NYSE saw more advancing issues (110) than declining ones (214), while the Nasdaq reported a 1.48-to-1 ratio in favor of rising stocks.