The Fed's $1 trillion move to turn around the moribund housing market ignited the markets Wednesday.

The Dow Jones Industrial Average jumped 90.88, or 1.23%, to 7,486.58, while the S&P 500 rose 16.23, or 2.09%, to 794.35. The Nasdaq was up 29.11, or 1.9%, to 1,491.22.

The Fed announced plans Wednesday to buy $750 billion worth of government-guaranteed mortgage backed securities on top of the $500 billion worth it is already buying. It also said it will buy $300 billion worth of long-term Treasury securities in the next six months.

That was exactly the news the markets wanted to hear. Tim Seymour said on CNBC's "Fast Money" TV show that the Fed is trying to save the housing market by going targeting mortgages and interest rates.

Joe Terranova was impressed with Fed Chairman Ben Bernanke's action. As the lender and buyer of last resort, the Fed "is going to fight this thing as much as they possibly can," he said.

Guy Adami said the markets feel like they want to go higher, and Seymour added he got the first sign of buying in the markets.

Terranova said the financial are rising quickly with no pullbacks for investors to jump in. "The train is leaving the station," he said.

Melissa Lee, the moderator of the show, pointed out today's drop in the 10-year yield -- the largest single-day drop since October, 1987 -- will have a big impact on mortgage and credit card rates. Terranova said refinancings account for 72% of the today's mortgage applications.

In the technology sector, Oracle ( ORCL) shares were up 7% in after-hours trading after the company beat earnings expectations and announced its first ever dividend.

In other tech news, IBM ( IBM) was reportedly in talks to buy Sun Microsystems ( JAVA) for $6.5 billion.

Seymour said Big Blue is moving aggressively to distance itself from the competition. He said IBM controls 43% of the server market, with HP ( HPQ) far behind.

With the Fed expanding its balance sheet to tackle the housing problem, the dollar declined. Terranova said the pullback is good because it will help exports. He said the Canadian and Australian dollar are better currency plays because of resource and commodity reinflation.

Lee brought in Dennis Gartman for his assessment of the rally. Gartman said he became bullish last Tuesday and remains bullish. He noted the S&P moved through 790 easily and the Fed's action was "spot on."

Gartman said the drop in the 10-year yield will benefit commodities such as steel and copper. With the economy headed for a rebound by year's end, investors will want to be in crude oil, steel and copper.

Sean Egan, managing director of Egan Jones Ratings, came on the show to talk about the Fed's actions. He said the Fed is engaged and doing everything it can to correct the housing problems. He said Treasury Secretary Tim Geitner may not carry the same gravitas as his predecessors, but that he will get the job done in providing capital assistance to banks.

Egan said institutional players will hopefully get comfortable with what's been going on and draw in the marginal players to get the market moving again. "We expect that to happen in the next six to 12 months," he said.

Gold was up 2.7% to 942. Terranova said those in gold should be in it for the long term and not the short term, where they will be "whipped around" as they were today.

Adami added, "More people are going to lose money than make money in the gold trade."

And Najarian said investors should look at gold for diversification purposes and not to "chase and trade."

Lee noted the rise in mergers and acquisitions in the first quarter, with health care leading the way, followed by financials and chemicals.

Najarian said there have already been $150 billion in deals in the pharmaceuticals industry, where companies with mountains of cash are trying to establish new drug pipelines.

Similarly, he said big tech names like Apple ( AAPL), Intel ( INTC) and Cisco ( CSCO) could be poised to make moves.

In the last energy stock standing segment, Terranova said he liked Exxon Mobil ( XOM) with its $31 billion in cash. He said the company is still spending the same amount for capital expenditures today as it did when oil was $150 a barrel. He said the company has a great balance sheet and the resources to fund new projects.

Adami liked ConocoPhillips ( COP) for the lower valuation and the added benefit of natural gas. Seymour liked Petroleo Brasileiro ( PBR).

In the final trades, Terranova was for IBM; Seymour for Banco Bradesco ( BBD), ICICI ( IBN)

and Banco Santander ( SAN); and Najarian was for Semiconductor HOLDRs ( SMH).

"Check out "'Fast Money' Portfolios of the Week" on Stockpickr every Thursday.

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