Fed’s QE Surprise Means Skyrocketing Stocks
Stocks skyrocketed on Wednesday after the Federal Reserve’s FOMC voted against initiating the taper of its bond purchases.
Stocks rocketed past the Space Station on Wednesday, following the unexpected decision by the FOMC to delay its plan to taper back the Federal Reserve’s bond purchases. The major stock indices set record intraday highs on the news, although the Russell 2000 Index did little to improve on Tuesday’s 0.96 percent advance.
It was widely anticipated that the Fed would cut back its monthly bond purchases by $10 billion to $75 billion.
The Dow Jones Industrial Average (NYSEARCA:DIA) jumped 147 points to finish Wednesday’s trading session at 15,676 for a 0.95 percent advance, after setting a record intraday high of 15,709.58. The S&P 500 (NYSEARCA:SPY) surged 1.22 percent to close at 1,725 after setting a record intraday high of 1,729.44.
In other major markets, oil (NYSEARCA:USO) skyrocketed 2.49 percent to close at $38.68. On London’s ICE Futures Europe Exchange, November futures for Brent crude oil jumped $2.38 (2.20 percent) to $110.57/bbl. (NYSEARCA:BNO). December gold futures jumped by $54.20 (4.14 percent) to $1,363.60 per ounce (NYSEARCA:GLD). Transports beat Voyager 1 to the Oort Cloud on Wednesday, with the Dow Jones Transportation Average (NYSEARCA:IYT) climbing 1.51 percent.