Business

US shares close higher despite rate rise signals

Trader in front of screens (file photo) Image copyright EPA

(Close): Wall Street shrugged off any concerns about an interest rate rise after the Federal Reserve signalled that a December hike was possible.

The Dow Jones rose 1.42% to 17,737.16 points, while the S&P 500 gained 1.62% to 2,083.58 points.

The Nasdaq rose 1.79% to 5,075.20 points, boosted by big rises for biotechnology stocks. Apple rose 3.2% after the shares got a broker upgrade.

Every Dow stock ended up, led by Nike, up 2.61% also after an upgrade.

Market seemed to welcome news that interest rates could rise, taking it as a signal that the US economy is strengthening.

The market today is just reinforcing the view that most likely the Fed is going to move in December, and that's not necessarily a bad thing for either the economy" or the stock market, said Jeremy Zirin, chief equities strategist at UBS Wealth Management Americas.

All 10 sectors in the S&P 500 rose, led by healthcare stocks, which rose 2%. The sector is up 5.1% this year. Financial stocks rose 1.8%.

Qualcomm and Target were the biggest drags on the S&P. Qualcomm fell 9.4% after a South Korean regulator alleged it violated competition laws.

Target fell 4.3% after warning it will miss its fiscal-year forecast for online sales growth.