NEW YORK — The U.S. stock market had its best day in more than a year after the Federal Reserve said it would remain patient in its approach to raising interest rates.
Stocks rose from the open Wednesday, led by energy companies, as oil prices showed signs of stabilizing from a big slump. The market’s gains were extended after Fed policymakers released a statement following the end of a two-day meeting.
A nearly six-year bull run for the U.S. stock market has been helped by the Fed’s huge stimulus, which has pushed down borrowing costs.
At the start of the month, investors worried that signs of a strengthening economy would lead policymakers to bring forward the start of rate increases. But the central bank said it foresaw no rate hike in the first three months of 2015.
“The Fed is going to be our friend for a very long time,” said Burt White, chief investment officer for LPL Financial. “Growth continues to be good, and corporate America is healthy. If you mix all that together, it translates to rising stock prices.”
The Standard & Poor’s 500 index rose 40.15 points, or 2.04 percent, to 2,012.89. That was the biggest gain for the index since October 2013.
The Dow Jones industrial average gained 288 points, or 1.7 percent, to 17,356.87. The Nasdaq composite climbed 96.48 points, or 2.1 percent, to 4,644.31.
Stock investors have taken a wild ride in the final quarter of the year.
The market plunged at the start of October on concerns about slowing global growth. Then it rebounded and surged to record levels in early December, before falling sharply last week as the price of oil collapsed and dragged down energy stocks.
On Wednesday, energy stocks led gains for the S&P 500 index as the price of oil steadied. Stocks in the sector jumped 4.2 percent, cutting their losses for the year to 13 percent.
The price of U.S. oil rose after the U.S. Energy Department reported a decline in inventories, a reversal of an earlier industry report showing increased inventories.
