The New York Stock Exchange has rallied significantly marking the biggest one-day advance since May of last year.

The Dow Jones Industrial Average jumped 429-point-92 points, or nearly four percent, to close at eleven-thousand-239-point-77 on Tuesday. The Nasdaq composite index climbed 124-point-83 points, or around five-point-three percent, to two-thousand-482-point-52.

Statements by the Federal Reserve that it would maintain "exceptionally low" interest rates through at least mid-2013 initially drove prices down nearly 200 points.

However, the New York Stock Exchange saw a sharp rally after the central bank’s statements were reinterpreted in a positive way. Improved investor sentiment and active buying of cheap stocks were also key factors that led to Tuesday’s rally.