01:46 PM EDT, 03/21/2024 (MT Newswires) -- US equity indexes rose after midday Thursday with industrials and financials among the top gainers as the Federal Reserve on Wednesday refrained from taking a hawkish stance on the path ahead for interest rates despite recent hotter-than-expected inflation data.

The S&P 500 rose 0.6% to 5,256.3, with the Nasdaq Composite up 0.7% to 16,487.4 and the Dow Jones Industrial Average 0.9% higher at 39,853.1. Most sectors rose with only communication services and real estate posting declines.

The Federal Open Market Committee held rates at 5.25% to 5.5%, in line with consensus, marking the fifth straight pause. The committee also left its median rate expectation for this year unchanged at 4.6%. Last week, the US producer price index accelerated faster than anticipated in February from both a month and a year earlier. The consumer price index also came in on the hotter side.

"As we expected, the Fed continues to see 3 [interest-rate] cuts this year and adopted the strong supply-side narrative we have been calling for in its forecasts," Morgan Stanley economists, including Ellen Zentner, said in a note. "The Fed sees recent supply-side factors driving growth higher as temporary."

In economic news, the Swiss National Bank reduced its key policy rate by 25 basis points to 1.5%, its first cut in nine years and a surprise move that made it the first major central bank to ease monetary policy, a note from Trading Economics said.

The US Treasury two-year yield rose 2.6 basis points to 4.63%, while the 10-year yield was little changed at 4.28%.

In the US, the March flash reading of manufacturing conditions from S&P Global rose to a 21-month high of 52.5 from 52.2 in February, compared with 51.8 expected in a survey compiled by Bloomberg.

The Conference Board's measure of leading indicators rose 0.1% in February, compared with expectations for a 0.1% drop in a survey compiled by Bloomberg and a 0.4% decrease in January.

The pace of US existing home sales jumped 9.5% to a 4.38 million seasonally adjusted annual rate in February from an unrevised 4 million rate in January, data from the National Association of Realtors showed. The consensus in a survey compiled by Bloomberg was for a decrease to a 3.95 million rate.

In company news, Micron Technology's ( MU ) shares surged 17%, the biggest gain on the S&P 500 and the Nasdaq, after several analysts raised price targets on the semiconductor manufacturer's stock. The company reported a swing to profit in fiscal Q2, while revenue rose from a year earlier.

West Texas Intermediate crude oil fell 0.7% to $80.71 per barrel.

Gold rose 0.9% to $2,181.1 per troy ounce, while silver slid 0.5% to $24.99.