The Nasdaq and S&P 500 rose to their highest levels in more than 17 months as the Federal Reserve's latest outlook encouraged the stock market Tuesday.
Stocks were up even before the Fed's afternoon announcement. After some volatility on the news, the major indexes rallied and closed near the day's highs.
The S&P 500 gained 0.8%, surpassing its January highs around 1150. The index also reached the highest level since October 2008. The Nasdaq advanced 0.7%, making its highest close since Aug. 28, 2008.
The NYSE composite jumped 1% as metals, energy and financials helped lead the market. The Dow climbed 0.4%.
Volume rose across the board, firming up the day's wins. In fact, nary a distribution day has occurred since the market follow-through on March 1.
Rather than stumbling on higher-volume declines, the market has notched several gains in higher volume, indicating institutional buying. Since the follow-through rally confirmation, the Nasdaq has four up days in higher volume, the S&P 500 has notched six and the NYSE seven.
But while the indexes acted bullishly Tuesday, leading stocks were generally quiet.
Some leaders that have been sluggish since their breakouts continued their lassitude.
Green Mountain Coffee Roasters (GMCR), Priceline (PCLN), Intuitive Surgical (ISRG)and Blue Coat Systems (BCSI) are some examples.
These are some upper-crust stocks that have been consolidating their recent gains. Still, dormant action isn't necessarily a sign of weakness, and few leaders have flashed sell signals.
A number of other leaders are making fruitful advances, such as Lululemon (LULU), Baidu (BIDU), Deckers Outdoor (DECK) and F5 Networks (FFIV).
Early Tuesday, the Commerce Department reported that housing starts slid 5.9% in February, but the figure was above forecasts. Homebuilders were among the day's best-performing industries. Embattled Greece cleared a hurdle as Standard & Poor's backed its deficit-reduction plan.
As expected, the Fed left interest rates unchanged and again said it planned to keep them near zero for an "extended period." The central bank saw business spending picking up and the job market "stabilizing."
The statement sent bond yields lower, which in turn hurt the dollar. With the greenback sliding, commodities climbed.
Posted 05:13 PM ET
Stocks were calm in after-hours trade Tuesday, following a solid finish in improved volume.
Investors will find no highly ranked stocks reporting late Tuesday or early Wednesday.
Upcoming economic reports are also minimal. The only major news to watch before tomorrow's open is the producer price index, which is scheduled to be released at 8:30 a.m. EDT. Consensus estimates for the month-to-month result are running at -0.2%. Excluding food and energy, analysts expect a rise of 0.1%.
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