U.S. stocks soar after Fed decisions

U.S. stocks surged after a choppy session Wednesday, as investors tried to digest the Federal Reserve's decisions at the conclusion of its two-day policy meeting.

The Dow Jones Industrial Average jumped 288.00 points, or 1.69 percent, to 17,356.87. The S&P 500 surged 40.15 points, or 2.04 percent, to 2,012.89. The Nasdaq Composite Index leapt 96.48 points, or 2.12 percent, to 4,644.31.

The Fed delivered new wording in its policy guidance by saying "it can be patient in beginning to normalize the stance of monetary policy" in its statement released Wednesday afternoon. In response, the stock market spiked up and then swung afterwards as the results were considered as largely in consistent with market expectations and a little more dovish.

Fed Chair Janet Yellen stressed at a press conference shortly after the statement that the new language is not a change in the Fed's policy which the Fed sees is consistent with its previous statement that it likely will be appropriate to maintain the extremely low interest rates for a considerable time following the end of its asset purchase program in October.

The Fed chief also said that almost all meeting participants expected interest rates to increase in 2015.

The Fed made little adjustment in its predictions for U.S. economic growth compared with its previous one, while reducing its inflation outlook.

On the economic front, the Consumer Price Index (CPI) for All Urban Consumers declined 0.3 percent in November on a seasonally adjusted basis, the largest drop since December 2008, mainly due to falling gasoline prices, said the Labor Department, exceeding market consensus of a 0.1-percent drop.

Moreover, U.S. mortgage applications declined 3.3 percent for the week ending Dec. 12 from one week earlier, according to the Mortgage Bankers Association.

Adding some upward jolts to the stock market, U.S. crude prices rallied somewhat to 56.47 U.S. dollars a barrel Wednesday, a day after breaking below 54 U.S. dollars a barrel.

U.S. stocks had witnessed big swings recently, as investors were growing restless on plunging oil prices which had sunk about 50 percent from its recent peak in June, posing sorts of uncertainties on the global economy.

On the previous day, the U.S. stocks closed a choppy session lower, as continuously tanking oil prices rattled nervous investors.