Even though the Fed issued a statement today that rate hikes and tapering may be sooner rather than later, all the indexes bounced back today, mostly due to consensus that tapering may not be nearly as aggressive as feared.  Evergrande has been negotiating with its bondholders and says it has a deal to make the interest payments that are due on Thursday. The S&P has regained 25% of the losses from the last few weeks.  Volume was a little below average at 9.9 billion. 

Wed  September 22, 2021  4:10 PM

Wall St ends higher as Fed signals bond-buying taper soon

By Caroline Valetkevitch

DJ: 33,919.84  -50-63        NAS: 14,746.40  +32.50        S&P: 4,354.19  -3.54        9/21

DJ: 34,258.32  +338.48     NAS: 14,896.85  +150.45       S&P: 4,395.64  +41.45     9/22

NEW YORK, Sept 22 (Reuters) - U.S. stocks ended sharply higher on Wednesday as investors took in stride the latest signals from the Federal Reserve, including clearing the way for the central bank to reduce its monthly bond purchases soon.  Trading was choppy, however, following the Fed's latest policy statement, in which the central bank also suggested interest rate increases may follow more quickly than expected. read more  Overall indicators in the economy "have continued to strengthen," the Fed said.  Bank shares rose following the news.

Stocks were already sharply higher before the statement from the Fed, with stocks bouncing back as concerns eased over a default by China's Evergrande (3333.HK).  Strategists said what eventually happens with tightening may be less hawkish than some expect.  “I don't think the Fed’s tightening is going to be anywhere near as hawkish as they anticipate. It’s going to be hard for them to execute on this plan as the economy slows next year,” said Joseph LaVorgna, Americas chief economist at Natixis in New York. 

The Dow Jones Industrial Average rose 338.48 points, or 1%, to 34,258.32, the S&P 500 gained 41.45 points, or 0.95%, to 4,395.64 and the Nasdaq Composite added 150.45 points, or 1.02%, to 14,896.85.

Evergrande's main unit said it had negotiated a deal with bondholders to settle interest payments on a domestic bond, calming fears of an imminent default that could unleash global financial chaos. read more  Apple and other big technology-related names gave the S&P 500 its biggest boost.  On the downside, FedEx Corp tumbled 9.1% after posting a lower quarterly profit and as the delivery firm cut its full-year earnings forecast.

Advancing issues outnumbered declining ones on the NYSE by a 3.88-to-1 ratio; on Nasdaq, a 2.38-to-1 ratio favored advancers.  The S&P 500 posted nine new 52-week highs and eight new lows; the Nasdaq Composite recorded 52 new highs and 66 new lows.

Volume on U.S. exchanges was 9.91 billion shares, compared with the 9.99 billion average for the full session over the last 20 trading days.