U.S. stocks closed mostly higher on the back of strong earnings and following the Federal Reserve's decision to keep interest rates unchanged. The Dow Jones industrial average rose 97.58 points to close at 21,711.01 and hit intraday and closing records. Boeing rose 9.88 percent and contributed the most gains on the 30-stock index. The hit an intraday record before closing flat at 2,477.83. The Nasdaq composite climbed 0.16 percent to 6,422.75 and also notched all-time highs. The Fed was widely expected to keep monetary policy steady. The central bank, however, laid the groundwork for winding down its massive stimulus program in September. "The Fed is entering a yield-curve management program if you will," said David Schiegoleit, managing director of investments at U.S Bank Private Client Reserve. "By reducing the balance sheet, the Fed is effectively steepening the yield curve."

Major U.S. Indexes

They said they plan to start the unwinding "relatively soon," which is the crux of the statement. Fed watchers had been looking for the language to change from "this year," as indicated following the June meeting, to something more immediate. The central bank also said, however, inflation remains below its 2 percent target. "I think they were giving themselves some wiggle room," said Chuck Cumello, president and CEO of Essex Financial. "They don't want to overshoot." U.S. Treasury yields fell heading into the Fed's announcement and remained at similar levels afterward. The 10-year yield traded at 2.3 percent while the two-year yield held around 1.363 percent. The CBOE Volatility Index (VIX), widely considered the best gauge of fear in the market, traded at a record low, breaking below 9, shortly after the Fed released its statement. "They were not aggressive in their inflation assessment but acknowledged that inflation is running below 2 percent," said Robert Tipp, chief investment strategist at PGIM Fixed Income. "But this is not a Fed that thinks it's behind the curve and that there is still time to normalize monetary policy."

A trader works on the floor of the New York Stock Exchange (NYSE) in New York. Brendan McDermid | Reuters