US stocks soar after Fed says economy is improving
NEW YORK (AP) — Stocks are surging after the Federal Reserve decided the U.S. economy was strong enough for it to reduce its stimulus efforts.
The Fed voted Wednesday 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.