The expected rally that was triggered by yesterday's after-the-bell stellar Q3 report from Apple happened right on schedule as the Dow shot up nearly 200 points.  The market also got its expected high-five from the Fed when they decided to hold off on a hike this month but made it pretty clear that a hike may very well come in December, just as they've been saying all along.  Curiously, the market actually found some solace in this in that the Fed was validating the improving economy so, instead of rushing to sell as the threat of a hike would ordinarily do, instead investors optimistically kept buying.  And Apple's numbers were indeed fabulous triggering just over a 4% gain in their price with the news that they sold 48 million iPhones in Q3 and nearly doubled its revenue from China, quite the reverse of what had been so widely feared.  The best news is that this 200 point jump was based on very heavy volume of 8.5 billion shares, way above the last month's average of 7.2 billion.

Markets | Wed Oct 28, 2015 6:29pm EDT

Wall Street jumps as Fed keeps Dec rate hike in play

BY CAROLINE VALETKEVITCH

DJ:  17,779.52  +198.09      NAS:  5,095.69  +65.55        S&P:  2,090.35  +24.46

REUTERS/BRENDAN MCDERMID

U.S. stocks ended sharply higher after a volatile session on Wednesday as the Federal Reserve gave a vote of confidence in the U.S. economy by signaling a December interest rate hike was still on the table.

S&P financials, which benefit from higher borrowing rates, shot up following the statement and led sector gains. The financial index .SPSY ended up 2.4 percent, its biggest percentage gain in seven weeks. The KBW Nasdaq regional bank index .KRX jumped 4.1 percent.

S&P utilities .SPLRCU, which tend to do worse when interest rates are rising, fell 1.1 percent and led S&P sector declines.

The central bank left interest rates unchanged, as was expected, and, in a direct reference to its next meeting, put a December rate hike firmly in play. But it also downplayed global economic headwinds in its statement.

Stocks initially sold off following the statement but quickly rebounded to end at the day's highs as investors saw the statement as a sign the Fed has confidence the U.S. economy can sustain a rake hike.

"Obviously the first move (in stocks) is down, which is conventional wisdom. However, I do like the idea of the Fed having more confidence in the economy, less concerned about the global backdrop and willing to ring the bell on the long-term health of the U.S. economy with a rate hike," said Michael Marrale, head of research, sales and trading at ITG in New York.

The Fed has not hiked rates in about a decade.

The Dow Jones industrial average .DJI rose 198.09 points, or 1.13 percent, to 17,779.52, the S&P 500 .SPX gained 24.46 points, or 1.18 percent, to 2,090.35, its highest in more than two months.

The Nasdaq Composite .IXIC added 65.55 points, or 1.3 percent, to 5,095.69, while the Nasdaq 100 index of biggest non-financial names .NDX rose 0.9 percent to 4,678.57, just shy of a 15-year high.

Gains in Apple's shares (AAPL.O), up 4.1 percent at $119.27, also helped to support indexes, a day after stronger-than-expected results.

The company sold 48 million iPhones in the latest quarter and posted a near doubling of revenue from China, allaying concerns about its business in the world's second-largest economy.

On the flip side, Twitter (TWTR.N) shares fell 1.5 percent to $30.87 while Akamai Technologies (AKAM.O) dropped 16.7 percent to $62.91, Both reported disappointing results late Tuesday.

The S&P energy sector .SPNY snapped a three-day losing streak, ending up 2.2 percent, after a sharp rally in crude oil prices.

Advancing issues outnumbered declining ones on the NYSE by 2,428 to 645, for a 3.76-to-1 ratio on the upside; on the Nasdaq, 2,252 issues rose and 605 fell for a 3.72-to-1 ratio favoring advancers.

The S&P 500 posted 35 new 52-week highs and 6 new lows; the Nasdaq recorded 155 new highs and 82 new lows.

About 8.5 billion shares changed hands on U.S. exchanges, well above the 7.2 billion daily average for the past 20 trading days, according to Thomson Reuters data.