Stocks ended higher yesterday with the technology sector leading the way after the Federal Reserve kept interest rates unchanged, as expected, but signalled it could bump them up again later this summer.

A rally after the central bank's decision in the afternoon had faded some by the time the stock market closed as Wall Street reasoned future rate increases could dent corporate profits, particularly those of old-line blue-chip companies.

The Dow Jones industrial average, finished up 23.33 points, or 0.22 percent, at 10,527.79, after advancing more than 1 per cent immediately after the Fed's decision. Blue-chip stocks are seen as more vulnerable to interest-rate increases because higher borrowing costs can hurt corporate earnings.

The technology-packed Nasdaq composite index climbed 81.38 points, or 2.11 per cent, to close at 3,940.34, although the gauge had risen over 100 points within 15 minutes after the Fed's announcement. Biotechnology and Internet stocks helped drive the Nasdaq higher.