NEW YORK — U.S. stocks rose Wednesday after the Federal Reserve left interest rates unchanged and forecast it will raise rates more gradually than it had envisioned late last year.
The market had been lower before the Fed released its statement, which highlighted strength in hiring and housing, but weakness in exports and concerns over slower global economic growth. The Fed now expects to raise interest rates two times this year instead of four.
Jeremy Zirin, chief equity strategist for UBS Wealth Management Americas, said the Fed and the markets now seem to have the same view on interest rate increases, and that means the market might be a little less volatile than it has been recently.
“It probably eases investors’ minds that we’re unlikely to see a rate hike in April, and it probably takes June off the table,” he said.
Lower rates help boost economic growth by reducing borrowing costs and reducing the risk associated with expanding businesses or starting new ones. Lower rates also make stocks look more attractive to investors.
Stocks are now on track for their fifth straight week of gains, and the Dow Jones industrial average and Standard & Poor’s 500 index closed at their highest levels since the first trading day of the year.
The Dow gained 74.23 points Wednesday to 17,325.76. The S&P 500 index rose 11.29 points to 2,027.22. The Nasdaq composite index rose 35.30 points to 4,763.97.
Oil prices rose nearly 6 percent and pushed energy shares sharply higher. Crude jumped after major energy producing nations said they will hold more talks next month about a freeze in oil output levels.
Benchmark U.S. crude rose $2.12 to $38.46 a barrel in New York. Brent crude, the benchmark for international oils, rose $1.59, or 4.1 percent, to $40.33 a barrel.
Energy companies were the top-performing sector on the market. Devon Energy gained $2.13, or 8.8 percent, to $26.22.
After the Fed’s decision, bond prices rose sharply and the yield on the 10-year Treasury note fell to 1.91 percent from 1.97 percent. The euro jumped to $1.1217 from $1.1107 late Tuesday. The dollar fell to 112.55 yen from 113.10 yen.
Mining and materials companies and technology stocks, which would all benefit from a weaker dollar, also traded higher. Greenwood Village-based Newmont Mining rose $1.18, or 4.5 percent, to $27.55 and Alcoa added 58 cents to $9.74.
