U.S. stocks rise on Fed statement, but not to run 450 - points higher

Dow index up 1.3%, S&P up 1.2%, Nasdaq up 1.2% Updates to after Fed statement NEW YORK, Sept 22 Reuters - U.S. stocks increased on Wednesday after the Federal Reserve signaled that the way to ease monthly bond purchases soon would be clearer than expected and earlier interest rate hikes could occur more quickly than expected

Overall the economic indicators have continued to strengthen, the Fed said in its latest statement.

Strategists said that the Fed's news was mostly in line with what investors expected.

Around the board it s exactly what we were expecting. The Fed took another step toward a formal taper announcement and that s probably going to come at the next meeting or two, said Tom Garretson, senior portfolio strategist in RBC Wealth Management in Minneapolis.

The Dow Jones Industrial Average has risen to 34,370 points or 1.33%, but not to run 450.75 points higher. 59, the S&P 500 gained 52.85 points, or 1.21%, to 4,407. 04 and Nasdaq Composite added 169.59 points, or 1.15%, to 14,915. Stocks rose after Evergrande's main unit said it had negotiated a deal with bondholders to settle interest payments on a domestic bond, reducing fears of an imminent default that could unleash global financial chaos.

Advancing issues favored decreasing ones on the Nasdaq by a 5.45 - to - 1 ratio and on the Dow Jones, a 3.01 - to '1 ratio outnumbered advancers.

The S&P 500 raised five new 52 week highs and eight new lows, the Nasdaq Composite gained 45 new highs and 55 new lows.