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New York - Wall Street stocks surged to fresh records on Wednesday on an up day for global equities, but the dollar fell sharply after a Federal Reserve policy statement highlighted weak inflation.
All three US stock indices notched fresh all-time highs, with the Dow's gain of 0.5% the most impressive of the major indices after Boeing soared nearly 10% following a strong earnings report.
Equity markets in Asia and Europe also rose.
"US stock markets appear to be riding a renewed wave of exuberance," said Michael Hewson, chief market analyst at CMC Markets UK.
Companies in the S&P 500 are on track to report an 8.1% increase in second-quarter earnings-per-share, even better than the 6.2% rise expected initially, said Sam Stovall, chief investment strategist at CFRA Research.
But the ability of strong earnings to "move the market is subsiding,' Stovall said.
Economic data will again assume greater importance soon, he said, noting that consumer confidence and other data suggest growth may be "tempered by housing weakness."
Meanwhile, the Federal Reserve kept benchmark interest rates unchanged and confirmed that it plans to begin to reduce its massive bond holdings "relatively soon," moves that were expected by the market.
The Fed statement noted that inflation is running below the central bank's two% target.
US stocks did not move significantly on the Fed announcement, but the dollar fell sharply against other currencies, with the euro climbing to its highest level in more than two years.
Near 21:00 GMT, the single currency was at $1.1735, up 0.8% from Tuesday.
"The Fed dropped a strong signal that it could start to unwind its $4.5trn balance sheet as soon as its next meeting in September which on the surface is positive for the dollar," said Joe Manimbo, senior market analyst at Western Union Business Solutions.
"But the overall tone of the Fed's statement read dovish with the bank a bit more concerned about the inflation outlook which puts in jeopardy another rate hike this year."
Improving demand and a weakening dollar has helped fuel a jump in copper prices to five-month peaks. Oil, already lifted by hopes for output cuts, got a further fillip from the US Energy Department reporting much lower-than-expected US stockpiles for last week.
Both crude contracts had jumped three% Tuesday with traders cheered by news that global crude producers, meeting in Russia called for stricter adherence to an agreement to reduce output.
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