The rest of the US indices also rose by about 0.7%

US stocks rose on Wednesday after the US Federal Reserve left rates unchanged at 5.5%, as expected, and increased the degree of rate cuts planned for next year. 

This is reported by Trading Economics.

All three major indices rose by about 0.7% after remaining unchanged for most of the morning trading activity, with the Dow Jones closing at a record high.

The economic outlook report showed that the FOMC expects the lending rate to be at 4.75% by the end of 2024, down from the previous forecast of 5.25%, as colder-than-expected inflation reports released in previous months forced Fed policymakers to revise downward their purchasing power parity (PPP) inflation forecasts, while unemployment and GDP figures remained largely unchanged. On the corporate front, biotechnology and defense stocks were the biggest gainers. 

On the other hand, Tesla shares fell by 2% after news that the company is recalling more than 2 million cars to fix an autopilot defect.