RTTNews - With traders picking up stocks at reduced levels following the losses posted in the two previous sessions, stocks are seeing considerable strength in late morning trading on Wednesday. The rebound comes ahead of the Federal Reserve's interest rate announcement.

While the Fed is widely expected to leave its interest rate target in a range between 0 and 0.25 percent, traders will keep a close eye on the accompanying statement, looking for any changes in the Fed's assessment of the economic outlook or its asset purchase plan.

Housing stocks are turning in some of the market's best performances, resulting in a 3.6 percent gain by the Philadelphia Housing Sector Index. Toll Brothers (TOL) is helping to lead the sector higher after reporting the first year-over-year increase in signed contracts in four years.

Significant strength is also visible in a variety of other sectors, reflecting broad based buying interest. Networking, airline, and electronic storage stocks are posting notable gains, while brokerage, semiconductor, and biotech stocks also showing strong upward moves.

The major averages have moved roughly sideways in recent trading, hovering near their best levels of the day. The Dow is currently up 122.05 at 9,363.50, the Nasdaq is up 32.11 at 2,001.84 and the S&P 500 is up 12.29 at 1,006.64.

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