Stock Markets Rise to Record Close After Fed Trims Monthly Bond Purchase But Pledges to Keep Interest Rate Low

By Staff,

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Stocks rallied today after the Federal Reserve decided to cut back on its $85-billion monthly bond buying program by $10 billion starting in January but said it will keep interest rates at historic lows until the labor market significantly improves.

Traders initially pushed the Dow Jones Industrial Average and the S&P 500 lower in the first moments after the 2 p.m. ET announcement, only to quickly reverse course to lift the market gauges to large gains as the central bank said it likely will maintain its low interest rate policies in place for several more years.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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This article appears in: Investing Commodities
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