Live Markets: US stocks rally as oil, bond yields fall in session after Fed meeting

Among the 11 major S&P 500 sectors, nine advanced. Technology was the biggest gainer with a 2.2% advance.

Tech's star performers were chips, with the PHLX semiconductor index adding 3.1%. The 1.2% gain in the S&P 500 software & services sector was roughly in line with the S&P 500's advance.

The next biggest S&P 500 sector gainers were consumer discretionary, up 1.4%, and utilities, up 0.9%.

On the flip side, consumer staples posted a minuscule 0.01% drop, while financials dipped just 0.1%.

In another sign of investor confidence, the CBOE volatility index closed down 2.27 points at 15.44, for its lowest close since September 7.

Main U.S. indexes rallied; the Nasdaq climbed 1.7%, the S&P 500 rose 1.1%, and the Dow added 0.6%.

The dollar edged down, U.S. crude fell more than 1%, bitcoin rose, gold was up about 2%, and the U.S. 10-year Treasury yield fell to around 4.94%.

Wall Street indexes closed higher on Thursday as oil prices and bond yields fell, while investors took Wednesday's decline as a signal to buy. U.S. stocks had fallen in the prior session after the Federal Reserve raised interest rates and signaled that there could be more hikes ahead.

"Markets are bouncing back after yesterday's choppiness on a combination of factors," said Gene Goldman, chief investment officer at Cetera, citing oil's decline and the day's economic data as well as the finer details in the Fed's update.

Goldman said that earlier housing data supported the idea that "the Fed may not need to hike as much as feared, perhaps just one and done or two and done" and noted that it also helped to push yields lower.