Stocks jump after Fed's statement on interest rate hikes

Trading was however choppy following the Fed policy statement, in which the central bank also suggested interest rate increases may follow more quickly than expected.

Overall indicators in the economy have continued to strengthen, the Fed said.

Stocks were already sharply higher ahead of the Fed's statement with stocks bouncing back as concerns eased over a default by China's Evergrande.

Strategists said: What gets got worse after tightening is less hawkish than some.

I don't believe the Fed hawkish is going anywhere near as aggressive as they anticipate. It s going to be difficult for them to execute on this plan as the economy shrinks next year, said Joseph LaVorgna, America s chief economist at Natixis in New York.

The Dow Jones Industrial Average (DA) rose unofficially to 34,260 points, or 1.01%, to 34,1.11 points. 95, the S&P 500 gained 41.54 points, or 0.95%), to 4,395, while the BSE 500 gained 3,283 points. 73 and Nasdaq Composite Added 150.45 points, or 1.02%, to 14,896. Evergrande's main unit said it had negotiated a deal with bondholders to settle interest payments on a domestic bond, calming fears of an imminent default that could unleash global financial chaos.