North American stocks soared Tuesday after the U.S. Federal Reserve announced it was cutting rates by half a percentage point.

The central bank lowered its federal funds rate 4.75%, down from 5.25%.

In Toronto, the S&P/TSX composite index gained 195.54. or 1.42%, to 14,005.40.

All 10 TSX main sub-groups were up on the session.

The energy index rose 1.64%.

Light, sweet crude for October delivery shot up 94¢ to US$81.51.

Petro Canada gained $1.20, or 2.08%, to $58.98.

The materials group gained 1.94%, and the gold index shot up 2.22%.

Gold futures fell 10¢ to US$723.70.

Silver Wheaton gained 32¢, or 2.48%, to $13.20.

The Canadian dollar gained 1.36¢ to US98.64¢.

The S&P TSX Venture Exchange rose 16.28, or 0.59%, to 2,765.56.

In New York, the Dow Jones industrial average surged 335.97, or 2.51%, to finish at 13,739.39, the Nasdaq composite index gained 70.00, or 2.71%, to 2,651.66 and the S&P500 moved up 43.13, or 2.92%, to 1,519.78.