Dow climbs 189 points to close above 33,000 for the first time as Fed sticks to easy policy, European markets close lower ahead of Fed decision; VW and BMW rally 
U.S. stocks erased earlier losses and jumped higher Wednesday after the Federal Reserve said it sees no interest rate hikes through 2023 and that it will let inflation run hotter than usual to ensure a full economic recovery. The Dow Jones Industrial Average gained 189.42 points, or 0.6%, to 33,015.37, marking the first time the blue-chip benchmark has closed above the 33,000 threshold. The S&P 500 erased a 0.7% loss and rose 0.3% to a record closing high of 3,974.12. The Nasdaq Composite wiped out earlier losses and ended the day 0.4% higher at 13,525.20. The tech-heavy benchmark fell 1.5% at one point as growth stocks came under pressure amid surging bond yields again. 
While the Fed expects benchmark interest rates to remain near zero for the next two years, the central bank upgraded their economic outlook to reflect expectations for a stronger recovery from the pandemic-triggered recession. Gross domestic product is expected to grow 6.5% in 2021 before cooling off in later years. 
Expectations for core inflation also moved higher, with the committee now looking for a 2.2% gain this year as measured by personal consumption expenditures. The central bank’s stated goal is to keep inflation at 2% over the long run. 
Shares of Disney gained 0.5% after CEO Bob Chapek told CNBC that California’s two Disneyland theme parks will reopen on April 30. McDonald’s climbed 1.9% after Deutsche Bank upgraded the stock to buy from hold. 

The pan-European Stoxx 600 index provisionally closed down 0.4%, with mining stocks shedding 1.9% to lead losses while autos continued to rally, climbing 3.1%. 
Earnings on Wednesday came from Munich Re, while BMW released its annual report. BMW shares rose 6.2% after stating it would see significant profit growth this year. 
Volkswagen shares continued Tuesday’s climb to add a further 11% to lead the Stoxx 600 after forecasting deliveries and earnings growth at its core brand in 2021. 
Source: CNBC