The Dow industrials turned negative and the broader market pared gains on Wednesday as the Federal Reserve said the economy would remain weak for a time, denting optimism about the strength of a rebound.

The Fed, in its statement following a two-day meeting, also said policy actions will contribute to a gradual recovery, and as expected, it left the benchmark fed funds rate at almost zero.

...The Fed is a little more downbeat than the market has been ... that they're emphasizing the weakness is a touch disappointing to me and to the markets, said Jim Awad, managing director at Zephyr Management in New York.

The market rose sharply from early March through May largely on the belief that the economy was turning around.

Before the Fed's comments, the three major U.S. stock indexes were solidly higher. Software maker Oracle's results beat expectations and durable goods orders jumped unexpectedly, adding to the hopes the economy is rebounding.

The Dow Jones industrial average <.DJI> was down 7.63 points, or 0.09 percent, at 8,315.28. The Standard & Poor's 500 Index <.SPX> was up 7.32 points, or 0.82 percent, at 902.42. The Nasdaq Composite Index <.IXIC> was up 31.15 points, or 1.76 percent, at 1,796.07.

Oracle's results boosted other technology shares.

(Reporting by Caroline Valetkevitch; Additional reporting by Ryan Vlastelica; Editing by Jan Paschal)

Oracle