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In its decision, which was unanimous, the Federal Open Market Committee said it expects to hold the Fed funds rate at its current level between 1.5 percent and 1.75 percent for the entirety of 2020. The FOMC sees one rate hike in 2021.
All three of the major averages closed higher, with the Nasdaq leading the way, up 0.5 percent.
|I:DJI||DOW JONES AVERAGES||29856.58||-189.66||-0.63%|
|I:COMP||NASDAQ COMPOSITE INDEX||12088.165497||+51.38||+0.43%|
Boeing was weaker after Federal Aviation Administration head Steve Dickson said in a CNBC interview that the 737 Max will remain grounded into 2020.
The home-improvement retailer Home Depot was lower after its 2020 outlook disappointed.
Peloton shares were under pressure for a second day after the research firm Citron Research, which is run by the short-seller Andrew Left, said shares would fall 85 percent over the next year to $5 apiece.
|HD||THE HOME DEPOT INC.||273.79||+0.54||+0.20%|
Looking at earnings, GameStop plunged after weak demand for video-game consoles and software led to a 23.2 percent drop in comparable-store sales. The video-game retailer posted a loss of $415.3 million, or 49 cents a share, versus expectations for an 11 cent gain.
American Eagle Outfitters fell after forecasting its fourth-quarter profit below Wall Street expectations. The retailer reported better-than-expected earnings and sales.
|AEO||AMERICAN EAGLE OUTFITTERS, INC.||18.43||+0.58||+3.28%|
On the commodities front, gold gained 0.8 percent to $1,480 an ounce and West Texas Intermediate crude oil was down 0.6 percent near $58.90 a barrel.
U.S. Treasurys were higher with the yield on the 10-year note down 4 basis points at 1.79 percent.
Markets in Asia were mostly higher following reports President Trump's advisers were preparing for a possible delay in a weekend tariff hike on Chinese goods.
In Asia, China's Shanghai Composite rose 0.2 percent, Hong Kong's Hang Seng advanced 0.8 percent and Japan's Nikkei shed less than 0.1 percent.
London’s FTSE was up less than 0.1 percent ahead of Britain's parliamentary election Thursday. Prime Minister Boris Johnson called the election two years before it was required in hopes of gaining a majority in the House of Commons to support his plan to leave the European Union by the end of January whether or not the two sides have negotiated details of their future relations.
Germany's DAX added 0.6 percent and France's CAC gained 0.2 percent.
On Tuesday, Democrats in the House of Representatives and the White House announced a revised trade deal with Mexico and Canada. The deal would replace the North American Free Trade Agreement and would offer more provisions for U.S. workers.
FOX Business' Ken Martin and The Associated Press contributed to this report.