Investing.com – U.S. stocks closed higher on Wednesday, after the Federal Reserve increased interest rates but maintained a less aggressive view than expected while energy stocks benefited from a surge in oil prices.
The Federal Reserve struck a somewhat dovish tone in its statement, as it reiterated the need to increase interest rates gradually while it maintained its view of three rate hikes, with the remaining two rate hikes expected later this year.
U.S. equities spiked on the release of the interest rate decision, as market participants viewed the unchanged rate hike path, as a signal that the Federal Reserve may be reluctant to raise rates rapidly.
Meanwhile, energy stocks, which have been the main laggards in the previous two-sessions benefited from a bounce in oil prices, as crude futures settled more than 2.4% higher at $48.86, after the latest Energy Information Agency report revealed a surprise dip in U.S. crude inventories.
Economic data also lifted sentiment in U.S. stocks as both inflation data and U.S. retail sales matched forecasts.
The Labor Department said Wednesday, consumer prices rose 0.2% in February, while the Commerce Department said retail sales climbed 0.1%. Both consumer prices and retail sales were in line with forecasts.
In corporate earnings news, Oracle Corporation (NYSE:ORCL) gained more than 2% in after-hours trade, as the tech giant delivered its fiscal third quarter earnings report, which exceeded analysts’ estimates.
The Dow Jones Industrial Average closed 0.54% higher at 20,950. The S&P 500 climbed 0.84% and the Nasdaq Composite added 0.74% to close at 5,900.
The top S&P 500 gainers included Southwestern Energy Company (NYSE:SWN) up 5.8%, and Newmont Mining Corporation (NYSE:NEM) up 5.2%, while Freeport-McMoran Copper & Gold Inc (NYSE:FCX) added 5.1%.
Macy’s Inc (NYSE:M) down 2%, Capital One Financial Corporation (NYSE:COF) down 2% and AutoZone Inc (NYSE:AZO) slumped 1.7%, were among the worst S&P 500 performers of the session.