The S&P 500 had its best day of the year after a wording change in the central bank's policy statement- betting a rate hike won't come too soon. Bobbi Rebell reports.
A patient Fed and an eager stock market. U.S. stocks rallied after the Fed replaced the phrase "considerable time" in reference to when rates would rise with the word "patience," and signaled it was on track to raise interest rates sometime next year. SOUNDBITE: JANET YELLEN, CHAIR, FEDERAL RESERVE (ENGLISH) SAYING: "At this point, we think it's unlikely that it will be appropriate that we will see conditions for at least the next couple of meetings that will make it appropriate for us to decide to begin normalization. A number of committee participants have indicated that, in their view, conditions could be appropriate by the middle of next year, but there is no pre-set time." The S&P 500 and the Nasdaq gained over two percent, while the Dow index gained over 1.5 percent. The Consumer Price Index saw its biggest drop in nearly six years, thanks in large part to falling gasoline prices. In corporate news: Fedex profits missed forecasts, sending shares lower. After-hours earnings: Oracle earnings beating forecasts - cloud bookings were up 140 percent. Shares of American Apparel jumped late Tuesday the company said it was officially ousting its controversial founder Dov Charney, and hiring a new CEO. Philips is buying Volcano for $1.2 billion, pumping up the shares of the medical device maker. But the electronics conglomerate is paying a huge premium, and that sent Philips' shares lower. Turning to Europe - a rebound in energy stocks help lift stocks - the major indexes closing mostly higher.