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US stocks gain as Federal Reserve decides to not raise interest rates till 2014

The market rose also because Apple Inc's stock surged over 6 per cent, boosting technology shares in NASDAQ.

IANS | January 26, 2012 | Updated 11:08 IST

US stocks rose on Wednesday after the Federal Reserve said it will not raise interest rates until at least 2014, maintaining its accommodative stance to support the country's economy, Xinhua reported.

The investors cheered after the Fed said on Wednesday that economic conditions "are likely to warrant exceptionally low levels for the federal funds rate at least through late 2014."

The market rose also because Apple Inc's stock surged over 6 per cent, boosting technology shares in NASDAQ.

The company late on Tuesday posted a record quarterly revenue of $46.33 billion and a record quarterly net profit of $13.06 billion, making its first quarter of FY12 record-breaking.

Communications technology company Motorola Solutions reported on Wednesday its fourth-quarter net earnings were $184 million. Revenues totalled $2.3 billion, a 5-per cent increase from a year ago.

Meanwhile, Boeing, the biggest jet company posted a stronger-than-expected 20 per cent increase in fourth-quarter profit on Wednesday.

However, the market was still pressured by disappointment with the lack of deals between Greece and its private bondholders.

Moreover, creditors of Greek bond met in the French capital of Paris in a closed-door meeting to discuss whether the talks should go on.

The Dow Jones Industrial Average gained 83.10 points, or 0.66 per cent, to 12,758.85. The Standard & Poor's 500 Index jumped 11.41 points, or 0.87 per cent, to 1,326.06. The Nasdaq Composite Index rallied 31.67 points, or 1.14 per cent, to 2,818.31.

As for other markets, the US dollar fell against major currencies in late New York trading on Wednesday as the Federal Reserve said that it would keep interest rate at exceptional low level for longer than previous expected.

The dollar index lost 0.51 per cent to 79.46.

Oil prices rebounded on Wednesday after the Fed said that its benchmark interest rate will stay ultra low until at least 2014.

As of Wednesday's close, light, sweet crude for March delivery rose 45 cents, or 0.5 per cent to settle at $99.40 a barrel on the New York Mercantile Exchange.

In London, Brent crude for March delivery also gained and last traded around $110.3 a barrel.

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