The SP 500 climbed to a uninformed record while a batch market’s fear sign fell to a lowest turn in 7 years, as investors took comfort from a Federal Reserve’s upbeat mercantile opinion and joining to low rates.

Fund managers pronounced they were reassured by Fed Chairwoman

Janet Yellen‘s

comparatively upbeat comment of a economy during a news discussion Wednesday that followed a latest assembly of central-bank process makers. Ms. Yellen reiterated that seductiveness rates would stay comparatively low for prolonged time, a service to some investors disturbed that any pointy arise in borrowing costs would impede a U.S. recovery.

The SP 500 index rose 14.99 points, or 0.8%, to 1956.98, a 20th all-time high reached this year.

The Chicago Board Options Exchange Volatility Index—a sign of financier stress about marketplace swings famous as a VIX—sank to 10.61, a lowest reading given Feb 2007.

The Dow Jones Industrial Average gained 98.13 points, or 0.6%, to 16906.62, about 39 points bashful of a new record. The Dow final finished during a record high on Jun 10. The tech-heavy Nasdaq Composite Index rose to a 14-year high.

Investors noticed a Fed’s preference to continue slicing behind monthly bond purchases as confirmation of central-bank officials’ certainty in a economy and a ability to withstand intensity headwinds such as instability in Iraq and a slack in China.

“The matter and Yellen’s press discussion were balmy to a markets,” pronounced

Alan Gayle,

who oversees about $500 million as executive of item allocation during RidgeWorth Investments. Ms. Yellen’s statements had an generally clever outcome after Tuesday’s stronger-than-expected reading on prices for consumers, one magnitude of inflation, Mr. Gayle said. That had lifted questions about either a Fed would need to take a some-more hawkish stance, he said.

The 10-year Treasury note climbed 12/32, pulling a furnish down to 2.611%.

Stocks have slogged aloft this year, with some bumps along a way, amid a light alleviation in many mercantile indicators, a pursuit marketplace and corporate earnings. With bond yields remaining reduce than many expected, investors contend bonds are some-more approaching to broach bigger gain in 2014. Year to date, a SP 500 is adult 5.9%.

“The extended settlement is flattering clear…the economy is strengthening,” pronounced

Seth Masters,

arch investment officer of AllianceBernstein LP’s private-client arm, that manages $70 billion. “It’s a good thing for stocks.”

While batch valuations are above their long-term normal now that a postcrisis longhorn run is in a sixth year, Mr. Masters things bonds are still “reasonably attractive…You’re removing a satisfactory deal.”

In her news conference, Ms. Yellen concurred, observant she didn’t consider stream batch prices, relations to gain or dividends, were broadly outward of a chronological norm. The SP 500 is now trade during 15.5 times forecasted gain for a subsequent 12 months, according to FactSet. The 10-year normal is 13.9.

The Nasdaq Composite Index rose 25.60 points, or 0.6%, to 4362.84, a top turn given Apr 2000. The final time a Nasdaq strike a 14-year high was in March, before a pointy selloff in biotechnology and Internet stocks.

The latest leg down in a VIX, an options-based magnitude of traders’ expectations for cost swings in a SP 500, reflects investors’ miss of fear that bonds are staid for a fall.

“People are reluctant to sell,” pronounced

Todd Salamone,

comparison clamp boss of investigate during Schaeffer’s Investment Research. “We’re seen a lot of people watchful on a sidelines, watchful to be buyers of any pierce lower.”

The Fed’s downward rider of a U.S. enlargement this year, to 2.2%, from a projected expansion rate of 3% forecasted in March, was widely approaching as it reflected a economy’s contraction in a initial quarter.

Investors seized on comments from Ms. Yellen that emphasized alleviation in a pursuit marketplace and easing credit conditions that could furnish “above trend” mercantile growth.

The Fed’s projections for a benchmark federal-funds rate rose somewhat for 2015 and 2016. The Fed is now forecasting a rate of 1.2% by a finish of 2015, compared with a foresee of 1.125% in March. For a finish of 2016, a rate is now seen during 2.5% compared with 2.4% in March.

Instead of spooking investors, a revised rate forecasts valid calming to a batch marketplace as a vigilance a economy is clever adequate to withstand aloft short-term borrowing costs.

Still, some investors and traders pronounced by somewhat lifting a forecasts of seductiveness rates for 2015 and 2016, a Fed wants to send a warning that investors shouldn’t be lulled into relief that rates would stay low forever.

“Investors need to ready for [a] probable interest-rate startle and high volatility,” pronounced James Camp, conduct of bound income during Eagle Asset Management, that has about $31 billion resources underneath management.

Mr. Camp pronounced he expects a 10-year furnish to corner aloft in entrance months though he pronounced a furnish might not strike 3%—a turn final seen in December—unless U.S. acceleration accelerates or “we have blowout gross-domestic-product numbers” for a economy.

Even with a allege to record levels, batch benchmarks continued to trade in a comparatively parsimonious range. Trading has been still in new sessions. As of Wednesday’s close, a SP 500 had done moves smaller than 1% for 43 sessions in a row, a longest such widen given 1995.


FedEx



FDX +6.16%



FedEx Corp.


U.S.: NYSE


$148.95


+8.64
+6.16%



Jun 18, 2014 4:01 pm

Volume (Delayed 15m)
:
5.64M



AFTER HOURS



$148.83


-0.12
-0.08%


Jun 18, 2014 6:52 pm

Volume (Delayed 15m):
14,027




P/E Ratio
28.00

Market Cap
$41.46 Billion


Dividend Yield
0.54%

Rev. per Employee
$281,039









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FDX in







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rallied $8.64, or 6.2%, to $148.95 after a package-delivery hulk reported mercantile fourth-quarter earnings and income that exceeded expectations. The association supposing a mercantile 2015 gain opinion that was in line with stream forecasts.


Adobe Systems



ADBE +8.20%



Adobe Systems Inc.


U.S.: Nasdaq


$73.08


+5.54
+8.20%



Jun 18, 2014 4:00 pm

Volume (Delayed 15m)
:
11.18M



AFTER HOURS



$72.95


-0.13
-0.18%


Jun 18, 2014 6:59 pm

Volume (Delayed 15m):
194,392




P/E Ratio
130.50

Market Cap
$33.62 Billion


Dividend Yield
N/A

Rev. per Employee
$346,514









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ADBE in







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Short position




shares jumped 5.54, or 8.2%, to 73.08 after a builder of Photoshop and Illustrator pattern software’s mercantile second-quarter practiced gain and sales rose above expectations, as clever subscription income equivalent a decrease in product sales.


?



LZB -8.05%



La-Z-Boy Inc.


U.S.: NYSE


$22.84


-2.00
-8.05%



Jun 18, 2014 4:02 pm

Volume (Delayed 15m)
:
2.93M



AFTER HOURS



$22.86


+0.02
+0.09%


Jun 18, 2014 7:00 pm

Volume (Delayed 15m):
10,597




P/E Ratio
22.15

Market Cap
$1.30 Billion


Dividend Yield
1.05%

Rev. per Employee
$165,830









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LZB in







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—Chris Dieterich and Min Zeng contributed to this article.

Write to Alexandra Scaggs during alexandra.scaggs@wsj.com