* Fed signals it could still tighten by year end
* BOJ adopts target for long-term interest rates
* Indexes up: Dow 0.42 pct, S&P 0.53 pct, Nasdaq 0.45 pct
(Updates with Fed decision)
By Lewis Krauskopf
Sept 21 Wall Street gained on Wednesday after
the U.S. Federal Reserve's decision to leave interest rates
The central bank strongly signaled it could still tighten
monetary policy by the end of this year as the labor market
improved further. The Fed said U.S. economic activity had picked
up and job gains were "solid" in recent months.
Traders generally had not expected the Fed to raise rates,
with bets before the meeting of only an 18 percent chance of a
hike, according to the CME FedWatch website.
"I don't think anybody is too surprised," said Alan
Rechtschaffen, portfolio manager at UBS in New York. "There was
some noise that the Fed might surprise the markets, but this Fed
doesn't really do that."
The Dow Jones industrial average rose 76.53 points,
or 0.42 percent, to 18,206.49, the S&P 500 gained 11.36
points, or 0.53 percent, to 2,151.12 and the Nasdaq Composite
added 23.79 points, or 0.45 percent, to 5,265.14.
After the Fed decision, 10 of 11 major S&P sectors were in
positive territory. Energy shares were the best
performing sector, up 1.7 percent.
Earlier on Wednesday, global markets reacted to the Bank of
Japan's abrupt shift to targeting interest rates on government
bonds to achieve its elusive inflation target.
Global stock indexes rose and the dollar fell to its lowest
against the yen in nearly a month.
(Additional reporting by Chuck Mikolajczak in New York and
Yashaswini Swamynathan in Bengaluru; Editing by Don Sebastian
and Nick Zieminski)