(CNBC) -- U.S. stocks cut their losses and moved higher on Wednesday as the market got past one of the big uncertainties heading into year-end. The Federal Reserve signaled a more aggressive unwinding of its monthly bond buying, as expected by the market, and forecast multiple rate hikes on the way next year.
The S&P 500 rose 1.3%, while the tech-heavy Nasdaq Composite jumped 1.7%. The Dow Jones Industrial Average added 305 points. All three were in negative territory for the day before the central bank’s decision.
The Fed announced on Wednesday that it would wind down its asset purchases, a process known as tapering, at a faster pace amid a continued rise in inflation. The Fed will be buying $60 billion per month of bonds starting in January, down from December’s rate of $90 million, and said that it will likely continue that trajectory in the months ahead.
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