New York, July 16 (DPA) US stock indices surged Wednesday as the Federal Reserve said the country's long recession was ending and upbeat outlooks from Intel and American Express.

The Dow Jones Industrial Average climbed more than three percent and recorded its biggest point gain since March. Financial and technology shares led the Wall Street gains.

The US central bank said its outlook had 'improved modestly' since April and the economy 'would expand sluggishly over the remainder of the year.' It warned that unemployment could still top 10 percent before the end of 2009.

The Fed pointed to signs that the financial sector, consumer spending and housing markets were all beginning to stabilize. It forecast a contraction of between 1 percent and 1.5 percent - better than its April prediction of a drop of 1.3 percent to 2 percent.

Computer-chip giant Intel handily beat expectations in quarterly results announced Tuesday evening.