U.S. stocks soar after Fed indicates at least 3 rate cuts in 2024

U.S. stock exchanges soared Wednesday to close with strong gains after the conclusion of the Federal Reserve's last two-day meeting in 2023.

The Dow Jones Industrial Average was up 512 points, or 1.4%, to finish at 37,090. The S&P 500 added 63 points, or 1.37%, to 4,707.

The Nasdaq increased 200 points, or 1.38%, to end the session at 14,733.

The Fed skipped an interest rate hike for the fourth time this year, as expected, and kept its federal funds rate unchanged between the 5.25%-5.5% target range-the highest in 22 years.

The central bank indicated at least three interest rate cuts in 2024, according to its projection materials, which showed that it could make an additional four rate cuts by 25 basis points each during 2025. The bank also penciled in three more rate cuts for 2026.

Fed Chair Jerome Powell said in his post-meeting press conference that the question to lower interest rates "begins to come into view" and it was discussed by the members of the Federal Open Market Committee during the meeting.

Powell meanwhile warned that the risk of a possible recession in the U.S. economy still exists.

The VIX volatility index, also known as the fear index, was up 0.12% to 12.19. The 10-year U.S. Treasury yield plummeted 4.6% to 4.017%.

The dollar index decreased 1% to 102.89, while the euro added 0.8% to $1.0882 against the greenback.

Precious metals jumped, with gold rising 2.3% to $2,025 per ounce and silver increasing 4.4% to $23.78.

Bitcoin soared 3.8% to $42,860 at the time, while the total value of the crypto market was up 3.4% to $1.61 trillion.

Oil prices were up around 1.8%, with global benchmark Brent crude at $74.59 per barrel and U.S. benchmark West Texas Intermediate crude at $69.81.