The S&P 500 climbed Wednesday, led by energy and financials as the broader market took the Fed's signal of a potential November taper in its stride.   

Fed chair Jerome Powell later signaled the taper could get underway in November, and end in mid-2022.  “Participants generally view, so long as the recovery remains on track, a gradual tapering process that concludes around the middle of next year is likely to be appropriate,” Powell said in a press conference that followed the monetary policy statement.  

Cyclical sectors including energy climbed more than 3%, underpinned by rising oil prices following data showing weekly U.S. oil supplies fell by a more than expected last week.
 

U.S. stock index futures were higher during early morning trading on Thursday after the Federal Reserve kept benchmark interest rates unchanged, indicating no immediate intention of removing stimulus policies.

The Nasdaq Composite finished the session 1.02% higher.

The central bank implemented a $120 billion per month bond-buying program last year as the pandemic shuttered the economy. As economic conditions improve more members of the Federal Open Market Committee now see the first rate hike happening in 2022.

On Thursday the Department of Labor will release initial jobless claims number. Flash estimates for September Manufacturing PMI and Services PMI will also be released.