(CNBC) — U.S. stocks rose on Wednesday, with the Dow Jones Industrial Average and S&P 500 rising for a third consecutive month, as Wall Street welcomed a further reduction in the Federal Reserve's monthly bond purchases while looking past data showing the economy slowed more than expected in the first quarter.
"Investors are absolutely looking past the first quarter, and looking to the Fed to continue with lower rates," said Chris Gaffney, senior market strategist at Everbank..
In its statement, the central bank said the economy has gained traction recently after a sharp slowdown. It trimmed its monthly asset purchases to $45 billion, making its fourth consecutive $10 billion cut.
Advertisement - story continues below
"The Fed has given investors what they were expecting, and investors like that stability," said Gaffney.