The Dow gained 115.27 points, or 0.43% to close at 27,186.83. The S&P 500 climbed 0.33% to 3,046.77. The Nasdaq Composite advanced 0.33% to 8,303.98. The Federal Reserve struck the right tone with investors, noting it is a long way from hiking rates.
The Fed managed to walk a tight rope of keeping the door open to further rate cuts but raising the bar for further policy moves moving forward. The central bank removed a phrase from its statement that said the Fed will " to sustain the current expansion. This signaled a pause to Fed rate cuts. However, Fed Chairman Jerome Powell also said inflation would need to rise significantly before the central bank thinks about hiking.
GE shares surged more than 11% after the company posted earnings that topped analyst expectations. The company also raised its cash flow estimates for the year. Yum Brands, meanwhile, dropped nearly 6% after posting weaker-than-expected earnings that were dragged down by the company's investment in GrubHub.