Published: Wed, September 28, 2016
Economy | By Melissa Porter

Markets Right Now: US stocks close higher

Wall Street closed near session highs on Thursday, with the Nasdaq Composite notching a record close, after the Federal Reserve's decision yesterday to leave interest rates unchanged calmed concerns that central banks might taper efforts to stimulate global growth.

Real estate companies rose as investors looked for income.

All three major indexes are poised to end the week higher after the notched its best two-day performance in more than two months on Thursday. San Francisco-based Digital Realty Trust saw its shares climb 2.7% to $98.09. AT&T rose 1.3% to $41.11.

Trading followed a pattern that has become familiar in the last several months.

On Wednesday following a two-day meeting, the Fed announced that it will continue to stand pat on interest rates until it believes the US economy is strong enough to support an increase. FORECASTThe benchmark S&P 500 could continue to extend its gains on Friday because of technical momentum and the general feeling that a weak economy will keep the Fed from raising rates.

"It's another example of the issues facing investors right now, particularly pension funds and retirement funds, that they are all chasing yield in the same places", said Ian Winer, co-head of equities trading at Wedbush Securities.

BONDS AND CURRENCIES: U.S. government bond prices rose.

The rallies began after the Fed on Wednesday maintained the low-interest rate environment that had helped underpin the bull market for stocks since the global financial crisis in 2008.

Aside from the potential for Monday's USA presidential debate having a big impact on the election, "there's really nothing on the horizon until earnings season, and the Fed has kind of cleared the way for accommodative policy and low interest rate environment which bodes well for stocks", said Alan Lancz, president of investment advisory firm Alan B. Lancz & Associates in Toledo, Ohio.

USA stocks were also supported by the Bank of Japan's surprise decision to adopt a "yield curve control" under which it will buy long-term government bonds to keep 10-year bond yields at current levels around zero percent.

The Canadian dollar was up 0.26 of a cent at 76.56 cents United States as the USA dollar weakened following the Fed announcement.

Brent crude futures traded at $47.27 per barrel, after having climbed to a two-week high of $47.83 on Thursday. Marathon Oil rose 49 cents, or 3.4 percent, to $15.14.

Oil and commodities firms gained the most as oil and metal prices rose, while a weakened dollar made the climbing easy for the euro, pound and Swiss franc.

Yahoo was down 1.7 percent at $43.38, a day after the company said at least 500 million of its accounts were hacked in 2014 in a theft that appeared to be the world's biggest known cyber breach.

Copper prices advanced 1.6 per cent to $4,838 a tonne.

The yen also hit a four-week high of 100.10 against the greenback and the overnight drop in USA government bond yields saw German Bund yields move decisively back into negative territory.

This article was originally published at 10:50 a.m.

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