(Reuters) - U.S. stocks ended sharply higher on Wednesday after a volatile session 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 Fed 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 Fed left rates unchanged, as expected, and, in a direct reference to its next meeting, put a December rate hike firmly in play. It also downplayed global economic headwinds in its statement.Stocks initially sold off following the statement, with the S&P 500 erasing close to a 1 percent gain, 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 rate 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 raised rates in nearly 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.A 4.1 percent gain in Apple's shares to $119.27 also helped 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