Stock indexes are closing higher Wednesday after the Federal Reserve said it expects its key interest rate to remain near zero through 2023.
The central bank’s commitment to keeping rates at rock bottom lows comes even as it forecasts the economy will accelerate this year. Wall Street has been anxious about the potential for higher inflation and has been looking for signs that the central bank shares investors’ concerns.
The S&P 500 index finished 0.3% higher. The Dow Jones Industrial Average rose 0.6% and the technology-heavy Nasdaq gained 0.4%. The 10-year Treasury yield hit 1.65%, the highest since January 2020.
The S&P 500 rose 11.41 points, or 0.3%, to 3,974.12.
The Dow Jones Industrial Average rose 189.42 points, or 0.6%, to 33,015.37.
The Nasdaq rose 53.64 points, or 0.4%, to 13,525.20.
The Russell 2000 index of smaller companies rose 16.87 points, or 0.7% to 2,336.39.
For the week:
The S&P 500 is up 30.78 points, or 0.8%.
The Dow is up 236.73 points, or 0.7%.
The Nasdaq is up 205.34 points, or 1.5%.
The Russell 2000 is down 16.40 points, or 0.7%.
For the year:
The S&P 500 is up 218.05 points, or 5.8%.
The Dow is up 2,408.89 points, or 7.9%.
The Nasdaq is up 636.92 points, or 4.9%.
The Russell 2000 is up 361.54 points, or 18.3%.
The Associated Press