NEW YORK (CNNMoney.com) -- Stocks rose Tuesday after the Federal Reserve voted to keep interest rates at historic lows and Standard & Poor's did not downgrade Greece's credit rating.

The Dow Jones industrial average (INDU) was up 23 points, or 0.2%, with about one hour left in the session. The S&P 500 index (SPX) rose 6 points, or 0.5%. The Nasdaq composite (COMP) gained 8 points or 0.3%.

In a widely expected move, the Federal Reserve announced plans to hold its benchmark interest rate at historic lows near zero percent, the level at which the rate has been since December 2008. Echoing past statements, the Fed added that rates will remain "exceptionally low" for an "extended period" of time.

The Fed said economic conditions continue to improve and that the job market is stabilizing. While the Fed expects economic growth to be "moderate" in the short run, the bankers said activity could pick up in the future as inflation remains tame.

As previously announced, the Fed said its plan to buy $1.25 trillion in mortgage-backed securities will end later this month.

"Not a big surprise," said Bruce McCain, chief investment strategist at Key Private Bank, of the Fed's announcement.

"They have gone out of their way to indicate improvement, while continuing the fight to establish economic growth," he said. "Even the description of Hoenig's position seems to be a bit more strident."

Thomas Hoenig, president of the Federal Reserve Bank of Kansas City, was the one dissenting vote. Hoenig, who was also the sole dissenter at the last Fed meeting, is concerned that keeping rates low indefinitely could be creating new bubbles in financial markets.

Stocks were also supported by news that ratings agency Standard & Poor's did not downgrad Greece's credit rating after warning last month that a downgrade was possible. But the outlook for the debt-stricken nation remains negative, S&P said.

"That's allaying some fears about the potential for the sovereign debt crisis to spread," said Abigail Doolittle, a portfolio manager at Johnson Illington Advisors. However, she added that many large European nations and U.S. states are still facing dire fiscal scenarios.

Wall Street finished Monday's session little changed in the aftermath of an advance that has seen stocks finish higher in four of the last five weeks.

Economy: New home construction fell 5.9% to an annual rate of 575,000 in February, according to a government report, from an upwardly revised 622,000 during the previous month.

Economists surveyed by Briefing.com expected housing starts to have fallen to an annual rate of 570,000 during the month.

The report said building permits slipped 1.6% to an annual rate of 612,000 in February. They were expected to have fallen to an annual rate of 601,000 during the month.

A separate reading showed import prices slipped 0.3% in February, posting the first decline since July 2009. Excluding fuel, import prices gained 0.2%. Import prices in January were revised to a 1.3% increase.

Export prices slipped 0.5% last month, following a revised 0.7% rise in January.

Companies: Intel (INTC, Fortune 500) jumped 3.6% after the chip maker unveiled new processors it says can deliver up to 60% greater performance than the previous generation processor.

Shares of General Electric (GE, Fortune 500) rose 4% after the conglomerate said during a conference with analysts that it expects higher profits and dividend payments in 2011.

Boston Scientific (BSX, Fortune 500) recovered from a drubbing in the previous session to trade 4.7% higher. Shares of the medical device maker fell 16% Monday after the company halted delivery on some implantable defibrillators because it neglected to notify federal regulators of a manufacturing change.

Sony (SNE) and the estate of Michael Jackson have signed a landmark music deal for 10 albums over seven years. The deal is said to be worth as much as $250 million.

Lehman Brothers Holdings submitted a proposal to the U.S. Bankruptcy Court in New York to resolve the biggest Chapter 11 filing in Wall Street history.

The defunct brokerage, which collapsed in September 2008, would form a subsidiary called LAMCO to oversee its remaining assets, which include commercial real estate, residential mortgages and derivatives.

The dollar and commodities: The dollar slipped versus the euro, the pound, and the yen.

U.S. light crude for April delivery rose $1.90 to settle at $81.70 a barrel.

The price of gold rose $17.10 per ounce to settle at $1122.50.

Bonds: The price of the 10-year note fell, boosting the yield to 3.65%. Treasury prices and yields move in opposite directions.

World markets: European markets rose. The CAC 40 in France and Germany's DAX both gained about 1.4%, while Britain's FTSE 100 advanced 0.6%.

European finance ministers said late Monday that euro area countries have developed a mechanism to help Greece if it is determined that the debt-stricken country needs to be rescued.

In Asia, the Hang Seng in Hong Kong and Japan's benchmark Nikkei index both lost about 0.3%.