NEW YORK (CNNMoney.com) -- Stocks improved Wednesday afternoon after the Federal Reserve kept a key short-term interest rate unchanged, as expected, and hinted in its statement that it would continue to do so for the time being.

However, gains were limited by the market's recent success, with the Dow having closed the previous session at an all-time high and the S&P having ended at an almost six-year high.

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The Dow Jones industrial average (down 9.77 to 12,118.11, Charts) flattened out around an hour after the 2:15 p.m. ET announcement. The blue-chip barometer had posted small declines through the morning.

The broader S&P 500 (up 4.71 to 1,382.09, Charts) index added 0.3 percent, after ending the previous session at its highest point since December 2000.

The tech-fueled Nasdaq composite (up 9.39 to 2,354.23, Charts) added 0.4 percent.

The central bank opted to keep the Fed funds rate at 5.25 percent, as it has for the last two meetings, after raising it 17 times in a row over a more than two-year period.

In the closely watched statement, the bankers noted the negative impact of the slowing housing market on the economy, but also saideconomic growth is likely to pick up at a moderate pace going forward.

The Fed also discussed the threat of sustained upward pressure on inflation, but tempered it by saying that such pressures are likely to ease over time.

Overall, the statement kept the bank's options open in terms of the future of rate hikes.

"The language has moved around a bit, but it's still balanced," said Gregory Miller, chief economist at SunTrust Banks. Essentially, "at the end of October, the Fed is no more clear about the economy and inflation than it was at the last meeting in late September."

That balanced tone seemed to be a comfort to the bond market, and at least initially, to stocks as well, Gregory said. Bets that the Fed might be able to start cutting rates in the first half of 2007 have been supporting stocks this fall.

However, of late, Gregory said, there have been concerns that the Fed might actually have to restart its hiking campaign before it can cut.

"There may have been some relief that this statement wasn't more hawkish," Gregory said.

Treasury prices rose after the announcement, with the ten-year note yield falling to 4.76 percent from 4.82 percent late Tuesday. Prices and yields move in opposite directions.

U.S. light crude oil for December delivery jumped $2.05 to $61.40 a barrel on the New York Mercantile Exchange, after the report on weekly crude oil supplies showed a surprise decline. While that was good news for some oil stocks, it dragged on the rest of the market.

Wall Street also took in a report showing that September existing home sales fell more than expected last month while prices posted a record drop from a year earlier.

Investors also eyed the latest spate of corporate earnings news.

General Motors (down $1.87 to $34.32, Charts) reported better-than-expected results Wednesday morning from its ongoing turnaround plan. However, investors took a 'sell-the-news' approach, after the stock's recent run, and shares fell.

Fellow Dow component Boeing (down $2.59 to $81.00, Charts) reported quarterly profit that fell from a year earlier, and raised its 2007 earnings forecast to a range that was still shy of analysts' forecasts. Shares slipped.

Corning (down $1.91 to $21.23, Charts) reported profit that rose from a year earlier and beat estimates, but also forecast a current-quarter sales outlook that is short of analysts' expectations. Shares of the maker of specialty glass for televisions and computers sank 8.7 percent in active New York Stock Exchange trading.

On the upside, Amazon.com (up $4.20 to $37.83, Charts) reported quarterly earnings and revenue late Tuesday that rose from a year earlier and topped estimates. The online retailer issued fourth-quarter and 2006 revenue guidance in a range that encompasses analysts' expectations.

Shares jumped over 12 percent Wednesday in active Nasdaq trade.

Also helping techs was KLA-Tencor (up $4.09 to $49.85, Charts), which jumped over 9 percent in active Nasdaq trade. Late Tuesday, the chipmaker reported improved sales that beat estimates and forecast higher current-quarter results.

The company did not report earnings for the last quarter as it is restating past results to adjust stock option accounting.

Market breadth was positive. On the New York Stock Exchange, winners beat losers five to three as 1.49 billion shares changed hands. On the Nasdaq, advancers edged decliners as 1.81 billion shares traded.

In currency trading, the dollar inched lower against the euro and the yen.

COMEX gold for December delivery rose $3.10 to $590.70 an ounce.

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