Major indexes on the US stock market closed strong on Thursday with a massive rally after the Federal Reserve opened the door for tapering but delayed its formal start.

The Dow Jones industrial average jumped 504 points, or 1.48%, to close at almost 34,765. The blue-chip index soared 844 points in the last two sessions. The S&P 500 rose 53 points, or 1.2%, to 4,449

The Nasdaq increased 155 points, or 1.04%, to 15,052 as the tech-heavy index again climbed above 15,000.

The Fed said Wednesday that moderation in the pace of asset purchases may soon be warranted, indicating tapering would soon begin. Chair Jerome Powell later said the bank may conclude tapering by the middle of 2022.

Tapering, the process of scaling back its $120 billion worth of monthly bond purchases, could begin in November or December, according to analysts, but its delay provided relief for investors and temporarily removed the risk of liquidity shortage.

The VIX volatility index, also known as the fear index, plummeted 10.7% to below the critical level of 20 as it settled at 18.63. The dollar index was down 0.4% to 93.09.

The yield on 10-year US Treasury notes, on the other hand, increased 7.8% to 1.435%.

Precious metals reversed course during the session and later extended losses. Gold lost 2.1% to $1,740 per ounce and silver declined 0.7% $22.52.

Oil prices rose more than 1.3% with Brent crude trading at $77.22 per barrel and US benchmark West Texas Intermediate crude at $73.23./aa