Stocks end higher on Fed stimulus pledge

Click for more market data.

NEW YORK (CNNMoney) U.S. stocks rose Wednesday after the Federal Reserve reiterated that its stimulus measures will remain in effect until the job market gets back on track.

The Fed said in its policy statement that it will continue buying $85 billion worth of Treasuries and mortgage-backed securities to help "make broader financial conditions more accommodative."

Speaking to reporters, Fed chair Ben Bernanke acknowledged that payroll data improved in February, but he cautioned that the trend may not last. The Fed also trimmed the upper end of its forecast for economic growth in 2013.

"This was pretty much what I expected," said Doug Roberts, chief market strategist for Channel Capital Research. The statement and Bernanke's comments "eliminate any lingering doubts about his position," Roberts said.

The Dow Jones industrial average gained 0.4%, to close at 14,511. Shortly after the Fed's announcement, the Dow hit a new intraday record high of 14,546.82. The S&P 500 gained 0.7% and the Nasdaq advanced 0.8%.

Stocks have been rallying on a combination of improving economic data and stimulus from the Fed.

So far this year, all three major U.S. indexes have gained between 9% and 11%, and the Dow recently had its longest string of gains since 1996.

Bernanke downplayed concerns about a stock market bubble.

"We don't see, at this point, anything that's out of line with historical patterns," Bernanke said, noting that the Dow was still far below its all-time high in inflation-adjusted terms.

Related: Cyprus buys some time

Meanwhile, investors continue to monitor developments out of Cyprus after lawmakers voted against a tax on bank deposits, which had been part of a

View the Original article