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New York - The Dow Jones Industrial Average closed at a new record on Wednesday after the Federal Reserve said the US economy was picking up following a winter slowdown.
The Dow advanced 45.47 points (0.27%t) to 16,580.84 to notch its first all-time high of 2014. The last record, 16 576.66, was set on December 31.
The S&P 500 rose 5.62 (0.30%t) to 1 883.95, while the tech-rich Nasdaq Composite Index added 11.01 (0.27%) at 4 114.56.
The Fed, concluding a two-day policy meeting, said economic activity "has picked up recently after having slowed sharply during the winter in part because of adverse weather conditions".
The central bank, as expected, continued a plan to gradually taper its bond-buying stimulus programme, while maintaining ultra-low interest rates.
The Fed's positive outlook outshone a disappointing report from the commerce department, which said gross domestic product grew by a scant 0.1% annual rate in the first quarter.
Sam Stovall, chief investment strategist at S&P Capital IQ, said sentiment has improved thanks to solid corporate earnings, better economic data and stock valuations that are reasonable.
But Stovall cautioned that weakness in the Nasdaq, if it persists, "could have a dampening effect".
Michael James, managing director of equity trading at Wedbush Securities, said the new Dow record shows investor money has been flowing from trendy tech stocks to "more stable, less sexy names" in heavy industry.
James said the continued weak performance of the Nasdaq diminishes the significance of the Dow record. "I don't think it matters that much," he said.
