US stocks rise sharply on Fed relief; Nasdaq sets record

Source: AP

By ALEX VEIGA

U.S. stocks notched their biggest gains in a week Thursday, pushing the Nasdaq composite index to an all-time high.

The rally came a day after the Federal Reserve suggested that it wasn't planning to raise interest rates right away. Ultra-low rates over the past six years have helped drive a bull market in stocks that has pushed the market to record levels.

The central bank said Wednesday that it needs to see more improvement in the economy and stronger signs of inflation before lifting rates, reassuring investors.

"The Fed's likely to raise rates later this year, but maybe not as aggressively as some market participants worried," said Michael Baele, managing director and senior portfolio manager at U.S. Bank Private Client Reserve.

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