Federal Reserve Chairman Ben Bernanke, chief inflation-watcher for the U.S. economy.(Photo: Manuel Balce Ceneta, AP)
NEW YORK (AP) - Investors are cheering the Federal Reserve's surprise decision to keep its economic stimulus program in place. It was widely expected that the Fed would cut back on its bond buying at the September meeting.
In response, the stock market hit a record high yesterday.
Stocks, which traded slightly lower throughout the morning, took off immediately after the Fed's decision in the early afternoon.
The S&P 500 surged 21 points, or 1.2 percent, to 1,725 on Wednesday, slicing through its previous all-time high of 1,709 set on Aug. 2.
The Dow Jones industrial average jumped 147 points, or 1 percent, to 15,676, also above its previous record high of 15,658 from Aug. 2.
The Nasdaq composite rose 38 points, 1 percent, to 3,783.