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The S&P 500 jumped 1 per cent on Wednesday as investors reacted to the Federal Reserve’s policy decision and eyed rising oil prices, marking the broad-market barometer’s best gain in two weeks.

Energy shares were the biggest advancers, zipping higher by 2.2 per cent. US crude oil prices were up by $1.05 to $48.80, helped by a report that showed US inventories fell last week for the first time this year. A weakening of the US dollar following the Fed decision was also a boon to the commodity.

Real estate and utilities stocks also posted hefty gains after the Fed lifted its lending rate, and forecast two more increases this year. Some investors had begun to speculate that the central bank could raise rates three more times — something that would be bearish for both sectors that tend to be favoured for their dividends.

Copyright The Financial Times Limited 2017. All rights reserved.

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