Investing.com -- U.S. stocks rallied late on Wednesday afternoon following a relatively dovish monetary policy statement from the Federal Reserve, offsetting earlier losses from a massive sell-off in Apple shares.
On Wednesday afternoon, the Federal Open Market Committee left the target range on its benchmark Federal Funds Rate unchanged at a level between 0.25 and 0.50% on Wednesday in a widely anticipated decision. In determining the size of future adjustments to the Fed Funds Rate, the FOMC said it will assess economic conditions, measures of labor market conditions, indications of inflationary pressures and expectations, as well as readings on financial and international developments. Since the FOMC last met in March, the central bank noted that economic activity has slowed in recent weeks.
Earlier, Apple (NASDAQ:AAPL) dragged down all three major indices, one day after posting its first quarterly decline in revenues in 13 years. It came iPhone unit sales fell sharply below analysts' expectation, amid concerns of weakening demand in the global smartphone market. At the same time, Apple offered forward guidance in terms of third quarter revenue and gross margin below analysts' forecasts.
The Dow Jones Industrial Average added 51.23 or 0.28% to 18,041.55, while the S&P 500 Composite index gained 3.45 or 0.16% to 2,095.15, after receiving a boost from the Fed. On the S&P 500, eight of 10 sectors closed in the green as defensive stocks in the Utilities and Telecommunication industry led. Stocks in the Technology and Health Care sectors lagged, each falling more than 0.15%.
The NASDAQ Composite index, meanwhile, closed as the session's underperformer after losing 25.14 or 0.51% to 4,863.14. Tech stocks weighed on the NASDAQ on Wednesday, following the latest batch of disappointing earnings. Already, Apple, Alphabet Inc (NASDAQ:GOOGL), Twitter Inc (NYSE:TWTR), Netflix Inc (NASDAQ:NFLX) and Microsoft Corporation (NASDAQ:MSFT) have failed to meet revenue forecasts during the previous quarter. In addition, each of the aforementioned companies besides Alphabet have offered weak forward guidance in the weak of the downbeat earnings. It comes as FB is set to report earnings on Wednesday after the bell.
The top performer on the Dow was Boeing Company (NYSE:BA), which added 3.20 or 4.26% to 137.50, as the Everett, Washington aircraft manufacturer reiterated its full-year revenue and profit forecasts even after its profits slumped during the first quarter. Over the period, Boeing incurred a surprising $156 million related to its KC-46 aerial refueling tanker. Apple was the worst performer, falling 6.71 or 6.43% to 97.64.
The biggest gainer on the NASDAQ was Akamai Technologies Inc (NASDAQ:AKAM), which jumped 2.19 or 4.16% to 54.85 after the Cambridge, Mass-based Cloud services provider reported stronger than expected quarterly earnings. Apple was also the worst performer on the NASDAQ, just below Regeneron Pharmaceuticals Inc (NASDAQ:REGN), which fell 16.38 or 4.03% to 390.28. The top performer on the S&P 500 was Boston Scientific Corporation (NYSE:BSX), which gained 2.20 or 11.17% to 21.89. The worst performer was H&R Block Inc (NYSE:HRB), which tumbled 3.23 or 13.56% to 20.59 after announcing plans to cut approximately 13% of its workforce following a disappointing tax season.
On the New York Stock Exchange, advancing issues outnumbered declining ones by a 2,147-923 margin.