Stocks Rallied after Fed Hinted December Rate Hike Possible

U.S. stocks ended sharply higher on Wednesday as the Federal Reserve gave a vote of confidence in the U.S. economy by signaling a December interest rate hike was still on the table. The Dow Jones Industrial Average jumped 198.09 points, or 1.13%, to 17,779.52. The S&P 500 rose 24.46 points, or 1.18%, to 2,090.35. The Nasdaq Composite advanced 65.54 points, or 1.30%, to 5,095.69.

The U.S. Federal Reserve kept interest rates unchanged on Wednesday and in a direct reference to its next policy meeting put a December rate hike firmly in play. The central bank also downplayed recent global financial market turmoil and said the U.S. labour market was still healing despite a slower pace of job growth.

GoPro Inc. (GPRO) reported net income of $18.8 million, or 13 cents a share for the third quarter, compared with $14.6 million, or 10 cents, in the year-earlier period. Revenue rose 43% to $400.3 million.

PayPal Holdings Inc.reported a third-quarter profit of $301 million as sales rose 14%. Revenue of $2.26 billion compares with the average analyst estimate of $2.27 billion.