(Reuters) - Wall Street climbed on Thursday, helped by gains in Apple, Alphabet and Facebook, as well as the U.S. Federal Reserve’s confidence in the strength of the economy after it raised rates for the third time this year.
Eight out of 11 sectors rose, with the S&P 500 communication services index, recently renamed and reconstituted with Facebook, Google-parent Alphabet and other internet and media stocks, jumping 0.80 percent.
Alphabet rose 1.20 percent and Facebook climbed 1.13 percent, both helping lift the S&P 500.
Apple rose 2.05 percent after JPMorgan started coverage of the stock with an “overweight” rating, citing the iPhone maker’s quicker-than-expected move to a services business.
While raising interest rates on Wednesday, the Fed left its monetary policy outlook for the coming years largely unchanged. Stocks closed lower after the rate hike, but on Thursday some investors refocused on the central bank’s confidence in the economy’s growth.
“The Fed’s statement is essentially a green light for the economy. It’s a confirmation that the U.S. economy is the best game in town for global investors,” said Jeffrey Kravetz, regional investment director at the Private Client Reserve of U.S. Bank.
Adding to feel-good sentiment was data showing economic growth accelerated in the second quarter at its fastest pace in nearly four years as previously estimated.
Amazon.com gained 1.93 percent after upbeat comments from brokerage Stifel about the company’s retail, cloud, and advertising businesses. The online retailer opened a brick-and-mortar store in New York City on Thursday.
Starting on Monday, the telecommunications sector was renamed “communication services” and reconstituted with major internet and media companies alongside AT&T and other telecoms. So
