Stocks soar after Fed says economy is improving
Federal Reserve Board Chairman Ben Bernanke testified before the Senate Banking Committee hearing on Capitol Hill on Feb. 26. The Fed will trim its $85 billion a month in bond purchases by $10 billion starting in January.
NEW YORK » Stocks are surging after the Federal Reserve decided the economy was strong enough for it to reduce its stimulus efforts.
The Fed voted today to cut its $85 billion in monthly bond purchases by $10 billion, starting in January.
The Dow Jones industrial average soared 293 points, or 1.9 percent, to 16,168. The Standard & Poor’s 500 index jumped 29 points, or 1.7 percent, to 1,810.
The Dow and S&P 500 were back at record highs.
The Nasdaq composite rose 46 points, or 1.2 percent, to 4,070.
Ford slumped 6 percent after issuing a three-year profit forecast that came in short of investors’ expectations.
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The yield on the 10-year Treasury note held steady at 2.88 percent.
