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ASSOCIATED PRESS
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.
The yield on the 10-year Treasury note held steady at 2.88 percent.
