Investing.com - U.S. stocks closed sharply higher as the Federal Reserve signaled low rates through at least 2014 and didn't rule out bond purchases to spur economic growth.
At the close of U.S. trade, the Dow Jones Industrial Average gained 0.66%, the S&P 500 added 0.87% and the Nasdaq Composite surged higher by 1.14%.
The Fed had earlier pledged to keep its target rate in place until mid 2013. However, it has now moved this date until late 2014 resulting in stocks soaring higher on the session.
In addition, the Fed anticipates unemployment will remain high and inflation under control in the foreseeable future.
Madelyn Matlock of Huntington Asset Advisors told Bloomberg, The Fed is saying that money will stay easy and the cost of money will stay low."
However, Greece continues to lead the bearish worries in the euro zone. Yesterday, hopes were dashed of a last minute bond deal to avoid default when officials rejected a final offer.
Reports of the European Central Bank being opposed to restructuring its Greek holdings added to the Greek default fears.
Earnings continue to paint a U.S. bullish stock picture as out of the 108 companies reporting in the S&P 500, 72 have beat estimates.
Netflix crushed estimates sending shares surging over 15%.
Soaring iPhone and iPad demand doubled Apple's profit sending shares to an all time high up 6.2%.
After the close of European trade, the EURO STOXX gave back 0.45%, France's CAC 40 fell 0.31%, while Germany's DAX eased higher by 0.04%. Meanwhile, in the U.K. the FTSE 100 slipped 0.50%.
Investors are awaiting reports on U.S. new home sales, unemployment claims and durable good orders on Thursday.
In other news, the World Economic Forum is underway in Davos.
At the close of U.S. trade, the Dow Jones Industrial Average gained 0.66%, the S&P 500 added 0.87% and the Nasdaq Composite surged higher by 1.14%.
The Fed had earlier pledged to keep its target rate in place until mid 2013. However, it has now moved this date until late 2014 resulting in stocks soaring higher on the session.
In addition, the Fed anticipates unemployment will remain high and inflation under control in the foreseeable future.
Madelyn Matlock of Huntington Asset Advisors told Bloomberg, The Fed is saying that money will stay easy and the cost of money will stay low."
However, Greece continues to lead the bearish worries in the euro zone. Yesterday, hopes were dashed of a last minute bond deal to avoid default when officials rejected a final offer.
Reports of the European Central Bank being opposed to restructuring its Greek holdings added to the Greek default fears.
Earnings continue to paint a U.S. bullish stock picture as out of the 108 companies reporting in the S&P 500, 72 have beat estimates.
Netflix crushed estimates sending shares surging over 15%.
Soaring iPhone and iPad demand doubled Apple's profit sending shares to an all time high up 6.2%.
After the close of European trade, the EURO STOXX gave back 0.45%, France's CAC 40 fell 0.31%, while Germany's DAX eased higher by 0.04%. Meanwhile, in the U.K. the FTSE 100 slipped 0.50%.
Investors are awaiting reports on U.S. new home sales, unemployment claims and durable good orders on Thursday.
In other news, the World Economic Forum is underway in Davos.