(RTTNews) - The Canadian market ended on a buoyant note on Wednesday on all-round buying with investors reacting to the Federal Reserve's monetary policy announcement.
Shares from across several sectors scored impressive gains.
The benchmark S&P/TSX Composite Index ended with a strong gain of 395.61 points or 1.96% at 20,629.45, the highest close in three months.
The Materials Capped Index surged 4.82%, the Real Estate Capped Index climbed 4.62%, and the Health Care Capped Index advanced 4.25%.
Stocks from utilities, energy, financials and communications sectors also posted strong gains. Several stocks from technology, industrials and consumer staples sectors too moved higher.
Barrick Gold Corp (ABX.TO), West Fraser Timber (WFG.TO), Agnico Eagle Mines (AEM.TO), Precision Drilling Corporation (PD.TO), B2Gold Corp (BTO.TO), Franco-Nevada Corporation (FNV.TO), Nutrien (NTR.TO) climbed 4.2 to 6%.
Colliers International (CIGI.TO), EQB Inc (EQB.TO), Canadian Tire Corporation (CTC.TO), Royal Bank of Canada (RY.TO) and Kinaxis Inc (KXS.TO) gained 2 to 4%.
Real estate stocks had a good outing. H&R Real Estate (HR.UN.TO) soared nearly 10%. Allied Properties Real Estate (AP.UN.TO) climbed 8.8%.
Healthcare stocks Tilray Inc (TLRY.TO) and Bausch Health Companies (BHC.TO) gained 5.7% and 4.1%, respectively.
In support of its dual goals of maximum employment and inflation at the rate of 2% over the longer run, the Fed said it decided to maintain the target range for the federal funds rate at 5.25 to 5.5%.
The accompanying statement said the decision came as economic growth has slowed from its strong pace in the third quarter, while inflation has eased over the past year.
With regard to outlook for rates, the statement notably included the word "any" with regard to whether "any additional policy firming" may be appropriate.
The projections provided by the Fed also suggest the central bank will begin cutting rates next year, with the median forecast indicating rates will be lowered to 4.6% by the end of 2024.
The median forecast points to rates in a range of 4.5 to 4.75%, hinting the Fed plans to cut rates by 25 basis points three times next year.
