The Federal Reserve said the economy was leveling out, and it left interest rates unchanged at the end of its two-day policy meeting.
The Fed also said it will extend the duration but not the size of a program to buy long-term government debt, which is part of its effort to revive credit and stimulate the economy.
The Dow Jones industrial average <.DJI> gained 120.16 points, or 1.30 percent, to close at 9,361.61. The Standard & Poor's 500 Index <.SPX> rose 11.46 points, or 1.15 percent, to 1,005.81. The Nasdaq Composite Index <.IXIC> added 28.99 points, or 1.47 percent, to 1,998.72.
The S&P is up 48.7 percent from its more than 12-year closing low set on March 9.
NYMEX-NEW YORK, Aug 12 (Reuters) - U.S. crude oil futures ended higher for the first time in four sessions on Wednesday, although Wall Street pared gains after the Federal Reserve kept the benchmark interest rates unchanged and extended Treasury
debt purchases.
On the New York Mercantile Exchange, September crude
The EIA said that domestic crude stocks rose 2.5 million barrels last week to 352 million barrels, above the forecast for a 700,000 barrel rise in a Reuters poll.
CBOT-SOYBEANS - August
Fund buying in deferred months lifted market and thinly traded August weak amid posting of 10 deliveries overnight Tuesday. Market weighed down in early dealings as traders locked in profits after big rally on Tuesday despite USDA crop data that forecast smaller-than-expected soy production and acreage numbers.
USDA pegs 2009 U.S. soybean production 3.199 billion bushels, down from average estimate for 3.225 billion. Soy acreage 77.7 million, up from July estimate by USDA for 77.5 million.
CBOT-SOYOIL - August
FCPO-JAKARTA, Aug 12 (Reuters) - Malaysian palm oil futures edged lower on Wednesday as investors locked in gains from a three-day rally in absence of fresh leads, traders said.
The benchmark October contract
REGIONAL EQUITIES-JAKARTA, Aug 12 (Reuters) - Southeast Asian markets ended mostly lower on Wednesday, led by Jakarta, as investors locked in gains from a recent rally and on caution ahead of assessments from the Federal Reserves on prospects for the U.S. economy.
Singapore <.FTSI> slipped 1 percent, weighed down by a 2.32 percent fall in DBS Group
In Kuala Lumpur, the index <.KLSE> eased 0.48 percent. Among the losers, are KNM Group