Best Second-Day Gain For Wall Street Since 2011

On Thursday, U.S. stocks surged to extend a Federal Reserve-fueled rally from the previous session. The surge also gave the S&P 500 its best two-day advance in three years.

Best Second-Day Gain For Wall Street Since 2011

On Wednesday, the U.S. Federal Reserve expressed its commitment to take a “patient” approach toward raising interest rates while signaling it was on track to raise rates in 2015. Analysts said Fed’s announcement offered relief and clarity to investors over the policy outlook.

The S&P 500 posted its biggest daily percentage gain since January 2013. The Dow jumped 421 points and recorded the best one-day percentage gain since December 2011. “The anxiety over the Fed meeting has abated for now, with the Fed using that word ‘patient’,” said Quincy Krosby, market strategist at Prudential Financial, which is based in Newark, New Jersey. “You had the beginning of the proverbial Santa Claus rally.” “Some of those who were caught in the meat grinder of what happened with energy … may be wanting to make up for performance now,” Krosby said.

“What happened this week was a game-changer. That easy money trade came to the forefront, and it’s so powerful it wipes out all of these concerns that exist,” said Adam Sarhan, chief executive of Sarhan Capital in New York.

The Dow Jones industrial average .DJI rose 421.28 points, or 2.43 percent, to 17,778.15, the S&P 500 .SPX gained 48.34 points, or 2.4 percent, to 2,061.23 and the Nasdaq Composite .IXIC added 104.08 points, or 2.24 percent, to 4,748.40.

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