Fed, Apple, Boeing Boost US Markets

Wall Street stocks rallied on Wednesday following a dovish Federal Reserve announcement and earnings from Apple and Boeing that bested expectations.

The Dow Jones Industrial Average finished at 25,015, a gain of 1.8 percent.

The broad-based S&P 500 rose 1.6 percent to close at 2,681, while the tech-rich Nasdaq Composite Index advanced 2.2 percent to 7,183.

The Fed kept interest rates unchanged and definitively signaled a cautious approach to further interest rate hikes, with Fed Chair Jerome Powell saying "the case for raising rates has weakened somewhat."

The Fed also said it could adjust the pace of reduction of its massive securities holdings, after markets became concerned that the current process was too rigid.

Apple surged 6.8 percent after reporting quarterly profit of US$20 billion, a dip of less than one per cent compared with the year-ago period. Revenue growth in music, movies, apps and other services offset slumping iPhone sales.

The results were better than feared after Apple earlier this month warned of a hit to revenues from a slowing Chinese economy.

Fellow Dow member Boeing jumped 6.3 percent after reporting better-than-expected fourth-quarter results and projecting a big jump in commercial aircraft deliveries. (AFP)