US STOCKS reached new highs after FOMC

The Standard & Poor’s 500 Index climbed to a record high after the Federal Reserve unexpectedly refrained from reducing bond buying.

The S&P 500 jumped 1.2% to 1,725.87. The benchmark index climbed above its all-time high of 1,709.67 reached on Aug. 2. The Dow (INDU) Jones Industrial Average rose 153.46 points, or 1%, to 15,683.19, also a record. Treasuries and gold rallied while the dollar slid.

“The Committee decided to await more evidence that progress will be sustained before adjusting the pace of its purchases,” the Federal Open Market Committee said today at the conclusion of its two-day meeting in Washington. While “downside risks” to the outlook have diminished, “the tightening of financial conditions observed in recent months, if sustained, could slow the pace of improvement.”

Utilities rallied the most out of 10 groups in the S&P 500 as investors snapped up high dividend-yielding equities. 

Utilities rallied 2.7 percent as Treasury yields sank and investors increased purchases of high-dividend-yielding shares. Utility stocks pay 4.2% in dividends for the second-biggest payout among S&P 500 groups.

Raw-materials stocks surged 2.2%. Newmont Mining, the largest U.S. gold producer, surged 8%, and Barrick Gold jumped 10%. Gold rallied the most in eight weeks, erasing an earlier decline after the Fed decision as the metal’s attractiveness as a store of value increased.

An index of homebuilders soared 5.7% to the highest level since July. 

D.R. Horton Inc. jumped 6.1%. Lennar Corp. climbed 6%4. PulteGroup Inc. added 5.5%.

FedEx Corp. (FDX) rose 5.1% after earnings topped estimates.

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