| Dow | 12,288.17 | +61.53 | +0.50% |
By: Abby Schultz
Stocks ended higher, once again hitting multi-year highs as the S&P finished at double its lowest level during the financial crisis.
The Dow Jones Industrial Average rose 61.53 points, or 0.5 percent to close at 12,288.17, its highest close since June 13,2008.
The S&P 500 gained 8.31 points, or 0.6 percent, to close at 1,336.32, more double the March 6, 2009 intraday low of 666.79.
The Nasdaq gained 21.21 points, or 0.76 percent, to close at 2,825.56, its highest close since October 31, 2007.
The CBOE Volatility Index, widely considered the best gauge of fear in the market, rose above 16.
Minutes from the Federal Reserve's Jan. 25-26 policy setting meeting, released on Wednesday, revealed some Federal Reserve officials believed the strengthening economy warranted putting the brakes on the Fed's $600 billion economic stimulus program, but they concluded the economy remained weak enough to continue.
The Fed also revealed their latest economic forecasts, lowering their outlook for core inflation to 1.25 percent for 2012, a signal the central bank is not in a hurry to raise rates, said John Canally, economist at LPL Financial.
The fact inflation is projected to remain subdued isn't a surprise, despite the focus lately on rising food and energy costs and their eventual effects on the U.S. economy, Canally added. Food and energy costs actually make up a small percentage of the costs consumers pay, while prices of other elements of the CPI, such as furnishings, are falling.
"There a disconnect between actual inflation and perceptions of inflation that has to be resolved," Canally added. "All the measures I look at, both observed and forecast, are low and stable."
Oil, meanwhile, gained after news from Israel's foreign minister that Iran plans to move two warships through the Suez Canal to Syria, although prices eased off highs of the day. Brent crude rose to nearly $104 a barrel, while U.S. light sweet crude rose more than $85 a barrel.
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