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Wednesday
Dec182013

Record Close on Wall Street After Fed Announcement

iStock/Thinkstock(NEW YORK) -- After the Federal Reserve announced that it is pulling back a bit on its bond buying stimulus program, stocks on Wall Street surged to new all-time highs.
 
The Dow closed up nearly 300 points at a new record high of 16,167.97 -- up 292.71.
 
The S&P 500 also closed at a new high, up 29.65 points at 1,810.65
 
The Nasdaq Composite also surged up more than 1 percent Wednesday to close at 4,070.06.

So why did stocks rally on a day when the Fed said it was pulling back on some of its stimulus?
 
ABC Chief Business and Economics correspondent Rebecca Jarvis believes this happened because the economy is getting stronger, more jobs are being created every month, corporate profits keep growing and the Fed Wednesday just took its foot off the stimulus gas a little. It'll still be pumping $75 billion into markets everything month.
 
She adds that for everyone who wants to buy a car or a home -- Fed Chairman Ben Bernanke said the Fed will keep interest rates at zero for at least another year. That means mortgage rates will stay around where they are today, which is good news for home values and anyone who wants to buy a home.

Copyright 2013 ABC News Radio