New York, March 16^th (TradersHuddle.com) – Stocks gained after the Federal Reserve gave the market a lift, as the Central Bank pledged to keep interest rates at record low for an extended period of time to safeguard the economic recovery.

The Dow Jones Industrial Average gained 43.83 points or 0.41%. The S&P 500 index added 8.95 points or 0.78%, while the NASDAQ climbed 15.80 points or 0.67%. Market breadth was positive. On the NYSE advancers outpaced losers by a rate of close to 3 to 1, while on the NASDAQ winners topped decliners by a rate of 5 to 3.

The market opened slightly higher after Standard & Poor's ended its review for a downgrade of Greece, saying the government's recent deficit-reduction measures are supportive of the ratings and housing starts came in line with expectations. In afternoon trading, stocks moved decisively to the upside as the Fed’s statement gave a lift to the overall market.

The Federal Reserve said that the labor market is stabilizing and business spending has risen, while inflation remains subdued. Although bank lending continues to contract, financial conditions should spur economic growth. Still, the Fed said, the economy is likely to require low interest rates for an extended period of time.

Before the open, economic reports showed a drop in new housing starts and building permits about in line or even slightly better than expected, pushing materials stocks to post the best gains on the S&P 500, while health care and telecom were laggards.

General Electric (NYSE:GE), the maker of jet engines and energy efficient locomotives, posted the biggest advance of the Dow Jones Industrial Average, as shares jumped 4.51% to $18.07.  Shares of the diversified conglomerate jumped after its chief financial officer said he expects the company's earnings and dividend to rise in 2011. General Electric posted a new 52-week high and traded above $18 a share, a level not achieved since December 2008.

Intel (NASDAQ:INTC), the largest chipmaker in the world, posted the second biggest gain in the Dow Jones Industrial Average and helped the NASDAQ to post gains as shares jumped 4.02% to  $22.02. Intel released its newest chips for servers ahead of rival Advanced Micro Devices (NYSE:AMD). The server chips are the first of a new generation chips that push performance while increasing energy efficiency.

24 of 30 Dow components posted gains, Alcoa (NYSE:AA) posted the third biggest gain in the blue chip index, as shares jumped 2.15% to $13.80. The aluminum maker moved higher as the metal prices moved higher on weaker Dollar as the Federal Reserve said it will keep interest rates near zero for an extended period.

The fourth best Dow component was Dupont (NYSE:DD), the 3^rd largest chemical company in the U.S. climbed 1.30% to $35.94, as material stocks led the gains in the S&P 500.

Bank of America (NYSE:BAC), the largest lender in the U.S, posted the fifth best gain in the blue chip index, as shares gained 1.07% to $17.03. Shares moved higher along with financial shares moved to the upside on the Fed’s statement.