The United States (US) stock market showed a positive situation after the focus was directed to the results of the FOMC meeting which announced the latest interest rates.
The Federal Reserve (FED) kept its funds rate unchanged at 5.50%, but Fed chairman Jerome Powell indicated the central bank's readiness to cut interest rates in September.
The S&P 500 closed 1.6% higher, while the Nasdaq 100 rose 2.6% and the Dow gained 100 points on Wednesday as a rally in chip stocks supported the technology sector.
The technology sector was the best performer as Nvidia surged 12.8% after Morgan Stanley named it a top pick, erasing some of the recent losses due to the stock market's shift in focus towards traditional sectors of the economy.
AMD shares also jumped as much as 4.4% after the company's results beat estimates.
Broadcom (12%) and Qualcomm (8.4%) were also higher after reports that some foreign companies would not be affected by US export restrictions on chip manufacturing to China.
Microsoft, on the other hand, lost 1.1% amid disappointing cloud results.
In a follow-up speech after interest rates were announced at the meeting early this morning, Powell signaled to be ready to lower interest rates in September but the decision of the meeting will depend on the latest data that comes after this.
