NEW YORK (CNNMoney.com) -- Stocks rallied Wednesday, after the Federal Reserve kept interest rates unchanged, as expected, and indicated it would continue to do so for the time being.

The Nasdaq composite (up 30.52 to 2,252.89, Charts) rose 1.4 percent.

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The Dow Jones industrial average (up 72.28 to 11,613.19, Charts) added 0.6 percent and ended the session within 110 points of its all-time high of 11,722.98, hit on Jan. 14, 2000.

The broader Standard & Poor's 500 (Charts) index gained around 0.5 percent and closed just fractionally beneath its 2006 high. Had it knocked out that high, the index would have stood at its best level in 5-1/2-years.

Bullish earnings news from Oracle and falling oil prices had boosted the market through the early afternoon.

The rally lost a little steam in the immediate aftermath of the Fed's decision and statement. But after digesting the message, stocks resumed the upward climb, closing near the highs of the day.

The central bank opted to hold a key short-term interest rate unchanged at 5.25 percent for the second straight meeting, as expected. The central bank had lifted the Fed funds rate 17 times in a row between June 2004 and June 2006 before pausing.

In its closely watched statement, the central bank essentially reiterated what it said in August, namely that the economy is slowing and that this will help take the edge off upward pressure on inflation. One notable addition to the statement this time: an acknowledgment that energy prices have come down recently.

"I think their main message is that they are not willing to declare victory against inflation just yet, and that if need be, they will raise rates again," said Stuart Schweitzer, global market strategist at JP Morgan Asset Management.

In terms of where the comments leave the stock market, now flirting with multiyear highs, Schweitzer said, "it cements the case for stocks to keep doing well, unless profits get hit."

He said that corporate profits are at risk as the economy slows further but that, overall, the market looks reasonably priced relative to earnings. He said he expects stocks to be able to build on gains through the end of the year, notwithstanding periods of volatility and small declines.

Oracle (up $1.80 to $17.93, Charts) reported quarterly earnings that rose from a year earlier and topped forecasts late Tuesday. The software leader also issued a current-quarter forecast that impressed investors, and its stock soared 11 percent Wednesday.

Oracle's news was eagerly welcomed by the tech sector, which had gotten burned Tuesday by Yahoo! (down $0.11 to $25.64, Charts). The Internet search engine's chief financial officer, speaking at a tech conference, warned that the online advertising market was getting hit by the slowing economy and that its earnings would be affected.

Yahoo shares were little changed Wednesday after stumbling Tuesday, while the broader tech sector bounced back on Oracle.

The Goldman Sachs software (Charts) index gained 3.1 percent, while the Goldman Sachs hardware (Charts) index added 2 percent.

On Wednesday, Morgan Stanley (up $0.50 to $72.35, Charts) reported higher quarterly earnings that topped estimates. That lifted Morgan Stanley shares modestly and gave a boost to the broader bank sector. The Amex Securities Broker/Dealer (Charts) index added 2 percent.

A standout to the downside was the energy sector, which slumped along with the price of the raw commodity.

Exxon Mobil (down $1.39 to $64.11, Charts), Valero Energy (down $1.71 to $48.39, Charts) and Halliburton (down $1.26 to $27.84, Charts) all tumbled in active New York Stock Exchange trade.

The Amex Oil (down 17.07 to 1,033.09, Charts) index lost 1.7 percent and the Philadelphia Oil Service (Charts) index lost 3.4 percent.

Market breadth was positive. On the New York Stock Exchange, winners topped losers almost 2 to 1 on volume of 1.61 billion shares. On the Nasdaq, advancers beat decliners by roughly 5 to 3 as around 2.22 billion shares changed hands.

U.S. light crude oil for October delivery sank $1.20 to settle at $60.46 a barrel on the New York Mercantile Exchange, after the release of the weekly oil inventories report, which showed a surprise rise in distillate supplies, used in heating oil.

Treasury prices barely budged, with the yield on the benchmark 10-year note at 4.73 percent, little changed from where it stood late Tuesday. Bond prices and yields move in opposite directions.

In currency trading, the dollar fell versus the euro and the yen.

COMEX gold for December delivery rose $3 to $586.20 an ounce.

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