The S&P 500 gained 26.84 points or 2.96 per cent to 932.68.
Shares of Intel surged 7.3 per cent following a better than expected earnings report after the bell on Tuesday. The company said chip orders from computer manufacturers had increased due to higher demand from consumers for computers. The company also forecast a strong third quarter.
The Federal Reserve had their policy meeting yesterday and according to CNBC, the minutes revealed that the Fed expects the economy will contract between one and 1.5 per cent this year. This is upgraded from its May prediction between 1.3 and two per cent contraction for the economy. Despite this, the Fed said that the unemployment rate could reach as high as 10.1 per cent, which is up from its previous forecast of 9.6 per cent. The US unemployment rate reported in June was 9.5 per cent.
Yesterday, the S&P/ASX 200 rose to close at 57.4 points or 1.48 per cent or 3924.5.
Oil was up at US$61.54 a barrel, and the Oz dollar was trading at 80.17 US cents.
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