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Sharp jump in oil propels markets

U.S. stocks climbed on Wednesday, with the Dow and S&P 500 bouncing back from a three-session drop, as investors bet that the Federal Reserve would continue to support the U.S. economy while readying for an interest-rate hike.

The Dow Jones Industrials gained 118.30 points to 17,187.17, with Exxon Mobil and Chevron leading gains that included 22 of 30 components.

The S&P 500 hiked 17.98 points to 1,990.72, with energy pacing gains among its 10 major sectors and industrials the sole laggard.

The NASDAQ index climbed 32.23 points to 4,580.06.

FedEx dropped after the shipper' posted disappointing second-quarter earnings; competitor United Parcel Service also fell.

Verizon Communications fell after Goldman Sachs Group downgraded the telecommunications company to neutral from buy.

The Federal Open Market Committee ends a two-day meeting Wednesday afternoon, with most expecting the Fed will drop the "considerable-time" language from its statement as it prepares to start raising rates in 2015.

Fed Chair Janet Yellen holds a news conference at 2:30 p.m. Eastern.

The U.S. Labor Department reported the consumer price index fell 0.3% in November, the largest drop since 2008. Low inflation gives the Fed more rein to take its time in increasing rates.

Prices for 10-year U.S. Treasuries fell slightly, raising yields to 2.10% from Tuesday's 2.07%. Treasury prices and yields move in opposite directions.

Oil prices hiked $2.08 per barrel to $58.01 U.S.

Gold prices added 80 cents an ounce at $1,195.10 U.S.

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