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Dow back above 11,000 - CNNMoney.com -- The Dow gained Wednesday after the Federal Reserve said that economic activity is picking up, and that it will hold a key short-term interest rate steady for an extended period of time.

The broader market was mixed as investors considered European debt issues and a batch of quarterly earnings reports.

The Dow Jones industrial average gained 53 points, or 0.5%, reclaiming the 11,000 level it lost in the previous day's selloff. The 11,000 level has psychological meaning, but is not a key technical level for traders.

The S&P 500 index added 7 points, or 0.7%, closing above 1,185, a key support level. The Nasdaq composite was barely changed.

Treasurys slip after Fed announcement - CNNMoney.com -- Treasurys fell Wednesday, after a government auction drew moderate demand and the Federal Reserve announced it will leave interest rates unchanged for an "extended period."

What prices are doing: The benchmark 10-year note fell 17/32 to 98-29/32, pushing the yield up to 3.76%. The 30-year bond slipped 23/32 to 100, and its yield rose to 4.63%.The 2-year note shed 5/32 to 99-30/32 with a 1.04% yield. The 5-year note was down 11/32 to 100 with a yield of 2.5%. Bond prices and yields move in opposite directions.

Fed: Economy better, rates to stay low - The Federal Reserve said Wednesday it sees further signs of improvement in the U.S. economy, but not enough to start raising its key interest rate from near 0% anytime soon.

The Fed's statement Wednesday once again spoke of a U.S. economy now in recovery, stating that "economic activity has continued to strengthen and that the labor market is beginning to improve."

But the central bank made little change in its language used to describe the outlook for its policy, saying it expects that economic conditions will "warrant exceptionally low levels of the federal funds rate for an extended period," as it has at every meeting since June of last year.

The fed funds rate, the central bank's key overnight lending rate, is a benchmark used to set interest rates on a wide variety of consumer and business lending.

In December 2008, the Fed cut the rate to near 0% in an effort to spur economic activity, and has left it there ever since.