The Dow Jones Industrial Average rose 383.25 points, or 1.08 percent, to 35,927.43. The S&P 500 increased 75.76 points, or 1.63 percent, to 4,709.85. The Nasdaq Composite Index jumped 327.94 points, or 2.15 percent, to 15,565.58.
Ten of the 11 primary S&P 500 sectors ended in green, with technology and health care up 2.75 percent and 2.11 percent, respectively, leading the gainers. Energy slipped 0.42 percent, the lone declining group.
U.S.-listed Chinese companies traded lower with all the top 10 stocks by weight in the S&P U.S. Listed China 50 index ending the day on a downbeat note.
The above market reactions came as the Fed on Wednesday announced that it would trim its asset buying program by 30 billion dollars a month to end its bond buying in March 2022, sooner than previously planned.
Meanwhile, the Fed decided to keep the federal funds rate unchanged at the record-low level of near zero as widely expected, and forecast three rate hikes next year.
"Changes to QE were exactly as expected, which explains the lack of movement in mortgages," Chris Low, chief economist at FHN Financial, said Wednesday in a note.
"What was not expected was the amount the dots rose in the dot plot and the broad support for hikes next year," he said.
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