The Dow Jones Industrial Average (INDEXDJX:.DJI) closed up 123.07 points, or 0.57% to reach a new record high of 21,532.14.
The 30-Blue Chip stock index also notched an all-time intraday high.
The S&P 500 (INDEXSP:.INX) closed up 17.72 points to 2,443.25, or 0.73%. The Nasdaq Composite (INDEXNASDAQ:.IXIC) closed up 67.87 points, or 1.10% to 6,261.17, with shares of Paypal Holdings Inc (NASDAQ:PYPL) hitting a record high.
Federal Reserve Chair Janet Yellen said Wednesday the U.S. central bank will start reducing its massive $4.5 trillion portfolio later this year. Rate hikes will come more gradual in the future. The Fed bolstered the portfolio, known as the balance sheet, as a way to stimulate the economy during and after the 2008 financial crisis.