Stocks Fired Up by Fed, Intel

Updated with closing stock prices.

The major indices surged more than 3% Wednesday as the market welcomed an Intel(INTC Quote) earnings surprise, a fresh round of economic data and minutes from the latest Federal Open Market Committee meeting.

The Dow Jones Industrial Average gained 256.72, or 3.1%, to 8616.21, while the S&P 500 climbed 26.84 points, or 3%, to 932.68. The Nasdaq Composite advanced 63.17 points, or 3.5%, to 1862.90.

Industrials, energy, financial and tech stocks were all swept up in a cross-sector rally after earnings and economic data offered a promising glimpse of the state of the economic recovery. Intel, which surpassed earnings expectations and raised guidance late Tuesday, was one of the greatest gainers on the Dow, rising 7.3%.

American Express(AXP Quote) also rose 12.2% as traders snapped up credit card stocks after Capital One Financial(COF Quote) and Discover Financial Services(DFX Quote) reported fewer-than-expected defaults and delinquencies in June.

(Click below to hear Bill Stone, chief investment strategist at PNC Wealth Management talk about this week's earnings and economic data, and why he thinks investor sentiment may be changing.)

The FOMC posted the eagerly awaited minutes for its June 24 meeting Wednesday afternoon. The Fed now expects the economy to shrink by a less severe range of 1% to 1.5% for 2009, vs. a previously forecast range of 1.3% to 2%. However, it also raised its expectation for joblessness, predicting unemployment could climb to 10.1% after its estimate of 9.6% at the May meeting.

The committee also raised its inflation projection to 1.2% to 1.8% for 2010 to reflect increased energy prices.