NEW YORK (TheStreet) -- The S&P 500 posted its biggest rally of 2014, climbing 2.04% on Wednesday after the Federal Reserve said it will remain "patient" when it comes to raising rates, and lower oil prices will be a "net positive" for the U.S.
The oversold condition of the market, comments from the Fed and stabilization of the Russian ruble all attributed to the S&P 500's rally, Guy Adami, managing director of stockmonster.com, said on CNBC's "Fast Money" TV show. However, he believes the market is likely to pull back to 1,950. Rates are likely headed lower while the iShares 20+ Year Treasury Bond ETF (TLT) is headed higher.
The market was oversold, said Karen Finerman, president of Metropolitan Capital Advisors, and the Fed has now "backed themselves out of a corner" by taking the pressure of a rate hike off the table. It still may raise rates in the mid-2015 as planned but the Fed now has added flexibility.
The Fed meeting was the catalyst for stocks going into year's end, according to Steve Grasso, director of institutional sales at Stuart Frankel. However, the market is likely to go lower unless crude prices can climb to $65 per barrel, which seems unlikely.
"I think the high for the year is in," said Dan Nathan, co-founder and editor of riskreversal.com. With that being said, stocks are likely to post a moderate rally into the holidays, while bonds sell off slightly.
Shares of Oracle (ORCL) rallied 5.5% in the after-hours trading session on stronger-than-expected fiscal second-quarter earnings. Richard Davis, an analyst at Canaccord Genuity, has a buy rating on the stock with a $48 price target.
The story at Oracle is getting less complex as it focuses more and more on the cloud, he said. If revenue start to climb due to this business, Oracle's valuation could increase as a result. Perhaps some of Oracle's other business segments will grow, helping to offset the margin compression from the cloud business, he said.