S&P 500 turns positive as Fed pledges support; Nasdaq rises over 1%

The S&P 500 turned positive on Wednesday after the Federal Reserve repeated its promise of support for the economy.

But Fed policymakers, in the latest policy statement, projected a 6.5 per cent decline in gross domestic product this year and a 9.3 per cent unemployment rate at year's end.

The S&P 500 was off as much as 0.8 per cent before the Fed statement.

"Heading into this meeting we didn't expect any policy changes. The Fed is committed to keeping current easing measures in place and it acknowledged that risks remain," said Charlie Ripley, senior market strategist for Allianz Investment Management in Minneapolis.

The pledge to keep monetary policy loose until the US economy is back on track repeats a promise made early in the central bank's response to the coronavirus pandemic.

Gains were led by the technology sector, and the Nasdaq was up more than 1 per cent.

The Dow Jones Industrial Average rose 62.33 points, or 0.23 per cent, to 27,334.63, the S&P 500 gained 14.7 points, or 0.46 per cent, to 3,221.88 and the Nasdaq Composite added 127.12 points, or 1.28 per cent, to 10,080.87.