Stocks Ended Higher as Fed Kept Rates Unchanged

U.S. stocks ended sharply higher on Wednesday, after Federal Reserve officials announced they would keep benchmark interest rates unchanged and signaled flexibility in their policy normalization path forward. The Dow Jones Industrial Average rose 434.90 points, or 1.77%, to 25,014.86. The S&P 500 advanced 41.05 points, or 1.55%, to 2,681.05. The Nasdaq Composite gained 154.79 points, or 2.20%, to 7,183.08.

Oil futures settled higher Wednesday, with weekly domestic crude supplies up less than expected. West Texas Intermediate crude for March delivery gained 92 cents, or 1.7%, to settle at $54.23 a barrel. March Brent crude rose 33 cents, or 0.5%, to $61.65 a barrel.

The Federal Reserve on Wednesday did maintain the target range for its benchmark interest rate at 2.25%-2.5% and released a new statement that further outlines its view of the role that reducing the size of its balance sheet plays in setting monetary policy.

Microsoft (MSFT) on Wednesday reported revenue of $32.5 billion, which was in line with expectations. Earnings per share came in at $1.08 per share versus analysts’ estimates of $1.09 per share.

Facebook (FB) reported better-than-expected Q4 results, beating on both the top and bottom lines. It earned $2.38 per share which was higher than the $2.18 per share that was anticipated on Wall Street. Revenue during Q4 came in above estimates at $16.91 billion.