Stocks reversed earlier losses after the Fed removed the word ''patient'' from its statement, but expressed caution about U.S. economic growth. Bobbi Rebell reports.
Wall Street surged after the Federal Reserve suggested a less aggressive timeline for interest rate hikes- dropping its pledge to be patient. But it cut its interest rate projections and downgraded its outlook for the U.S. economy. Stocks had been trading lower before the news. The S&P 500 ending within 1 percent of its record close set earlier this month. Greg McBride of Bankrate.com: SOUNDBITE: GREG MCBRIDE, CHIEF FINANCIAL ANALYST, BANKRATE.COM (ENGLISH) SAYING: "The markets responded very favorably because the Fed did what was expected, and at the same time the markets are getting the message that you know what? The Fed's not in a hurry to raise rate, and we are probably going to have these near zero interest rates for a few months longer than we thought." Energy shares soared as crude oil rallied, and the dollar dropped. The 10-year note fell below 2 percent. FedEx shares fell after the package courier issued a disappointing profit forecast for the full year. Navistar's shares skidded. Morgan Stanley downgraded the stock and cut its price target, predicting disappointing earnings. A court win for Herbalife. A judge tossed out a lawsuit claiming that shareholders lost money because the weight-loss products maker was a pyramid scheme. A number of brokerages raised their price targets on Oracle. Shares rallied one day after the database software developer reported solid revenue growth from cloud computing services. Overseas, the markets finished mixed.