Wall Street rallied on Wednesday, beginning the new month on a positive note and staging a rebound after posting its third straight negative month in October.

The move came after the US Federal Reserve left interest rates unchanged for the second time in a row, leading investors to believe that the central bank may stay put for the rest of the year.

Overnight, the Dow Jones gained over 220 points, while the S&P 500 gained 1% and also briefly crossed its 200-Day Moving Average. The Nasdaq gained 1.6%.

The Fed kept rates in a range of 5.25% to 5.5%, as was widely expected. The central bank also said “economic activity expanded at a strong pace in the third quarter.” In previous remarks, it noted the economy was growing at a “solid pace.”

“Given the recent rise in yields, the Fed is less likely to raise rates in December, with the possibility of raising them later to keep reducing inflation,” said Damanick Dantes, portfolio strategist at Global X.

However, Fed Chair Jerome Powell at the post-decision press conference would not rule out a hike next month, saying that the idea that it would be difficult to raise rates after pausing for two meetings was wrong.

In some other data, the ISM manufacturing index showed manufacturing activity contracted more than expected in October. The US treasury is also set to auction $112 billion in debt next week, matching Wall Street expectations.

Last month, the 10-year U.S. Treasury yield hit a 16-year high as investors feared the Fed would keep interest rates higher for longer.

(With Inputs From Agencies.)