Investing.com -- U.S. stocks rose broadly, ahead of a closely watched announcement by the Federal Reserve on Thursday afternoon as a surge in energy prices provided a boost to the major indices.
Following gains of more than 1% one session earlier, the Dow Jones Industrial Average and NASDAQ Composite index posted solid gains on Wednesday, even as traders remained cautious ahead of the announcement. Upon the completion of its two-day September monetary policy meeting on Thursday, the U.S. central bank could raise its benchmark interest rate for the first time in nearly a decade. The Dow gained 140.10 or 0.84% to 16,739.95 for its fourth winning session in five trading days, while the NASDAQ added 28.72 or 0.59% to close at 4,889.24.
The S&P 500 Composite index, meanwhile, rose by 17.22 or 0.87% to 1,995.31, as nine of 10 sectors closed in the green. Stocks in the Energy, Basic Materials and Consumer Goods industries led, each gaining more than 1.5% on the session. Stocks in the Telecommunications sector lagged.
Stocks among the major global breweries surged on Wednesday after reports surfaced that Anheuser-Busch Inbev SA (NYSE:BUD) approached SABMiller (LONDON:SAB), one of its main rivals, on a potential merger. A merger would create the world's largest brewery, comprising nine of the top 20 beers worldwide. At Wednesday's market value, the brewery would be worth more than $275 billion. Shares in Anheuser-Busch Inbev jumped nearly 7% to 115.43, while shares in SABMiller soared nearly 20% to 3,614.
"The Board of SABMiller confirms that Anheuser-Busch InBev has informed SABMiller that it intends to make a proposal to acquire SABMiller. No proposal has yet been received and the Board of SABMiller has no further details about the terms of any such proposal," SABMiller said in a statement. "The Board of SABMiller will review and respond as appropriate to any proposal which might be made. There can be no certainty that or as to the terms on which any offer might be made."
The top performer on the Dow was General Electric Company (NYSE:GE) which gained 0.62 or 2.45% to 25.92, one day after the multinational conglomerate announced it could move up to 500 jobs overseas if concerns related to the U.S. Import-Export bank are not rectified. The worst performer was Verizon Communications Inc (NYSE:VZ), which fell 0.13 or 0.28% to 46.24. Only two of 30 Dow components closed in the red.
The biggest gainer on the NASDAQ was Baidu Inc (NASDAQ:BIDU), which soared 8.97 or 6.34% to 150.37, amid a slight rally among Asian stocks. The worst performer was Avago Technologies, which lost 2.97 or 2.21% to 131.41.
Molson Coors Brewing Company (NYSE:TAP) ended Wednesday's session as the top performer on the S&P 500 after surging 10.07 or 13.86% to 82.71. A change in ownership structure at SABMiller would allow Molson Coors to acquire 58% of a U.S. joint venture between the companies that was completed in 2007. Altria Group (NYSE:MO), which has a 27% stake in SABMiller, gained 1.26 or 2.33% to 55.37. The worst performer was FedEx Corporation (NYSE:FDX), which dipped 4.29 or 2.79% to 149.71 after the package delivery company cut its 2016 profit forecast.
On the New York Stock Exchange, advancing issues outnumbered declining ones by a 2,406 to 730 margin.