Traders have cheered the latest rhetoric from the Federal Reserve with the US market rallying once again to new highs.
The US’s benchmark index, the S&P 500 jumped 48.34 points to finish at 2061.23 while the Dow Jones surged by 421.28 points, or nearly 2.5 per cent, to close at 17,778.15.
Overnight stocks in Asia echoed the US’s gains with Japan’s Nikkei 225 and the Topix rising 2.4 per cent apiece to close respectively at 17,621.40 points and 1,409.61.
Following the Fed’s latest statement on monetary policy, where it said it will be “patient” in terms of deciding to raise interest rates, a hike is now not expected until at least April next year.
Despite the change in tone from its previous stance of not raising its benchmark lending rate “for a considerable time”, Fed chair Janet Yellen however confirmed after the statement that the alteration in language does not mark a change in its policy intentions.
The UK market has also welcomed the news and by 8.30am on Friday, the FTSE 100 was 4182 points, or 1 per cent higher at 6507.82.