The S&P 500 and Dow Jones industrial average closed at record highs and bank stocks surged after the Federal Reserve indicated another rate hike this year was possible and that it would begin the unwinding of its balance sheet next month.
The statement was a little more hawkish than traders anticipated, causing the 10-year Treasury yield to jump higher and in turn, boosting financial shares.
The Dow Jones industrial average rose 41.79 points to close at a record 22,412.59 as JPMorgan and Goldman Sachs climbed.
The S&P 500 closed 0.06 percent higher to settle at 2,508.24, a new record. Industrials and materials shares both hit intraday all-time highs in today's session.
Following the Fed's announcement, shares of major banks including PNC Financial Services, Bank of America and Citi were all up more than 1 percent.
The Nasdaq composite fell 0.08 percent to close at 6,456.04 with Apple and Microsoft both lower.
U.S. central bank announced it will begin in October rolling off its $4.5 trillion balance sheet, most of which consists of the Treasurys and mortgage-backed securities it acquired under a program known as quantitative easing.
At the same time, the Fed did not raise its benchmark interest rate from its current 1 percent to 1.25 percent target, however, its updated rate forecast shows that another hike this year is likely.