US Stocks End Modestly Higher; Nasdaq, S&P 500 Hit Record Highs

US stocks saw some volatility following the Federal Reserve's monetary policy announcement but still managed to end Wednesday's trading mostly higher. The Nasdaq led the charge, surging 264.89 points or 1.5 percent to a new record closing high of 17,608.44. The S&P 500 also reached a new record closing high, jumping 45.71 points or 0.9 percent to 5,421.03. Meanwhile, the narrower Dow gave back ground after an early upward move and eventually ended the day down 35.21 points or 0.1 percent at 38,712.21.

The Labor Department said its consumer price index came in unchanged in May after rising by 0.3 percent in April. Excluding food and energy prices, core consumer prices rose by 0.2 percent in May after climbing by 0.3 percent in April. Core prices were expected to increase by another 0.3 percent. The report also said the annual rate of consumer price growth slowed to 3.3 percent in May from 3.4 percent in April. The annual rate of core consumer price growth also slowed to 3.4 percent in May from 3.6 percent in April. The pace of growth was expected to dip to 3.5 percent.

Meanwhile, the Fed said it decided to maintain the target range for the federal funds rate at 5.25 to 5.50 percent. The Fed acknowledged modest further progress toward its inflation objective in recent months but said officials still need "greater confidence" inflation is moving sustainably towards the target before they will consider lowering rates.

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