Dow Jones Climbs 206 Points On Fed Stimulus News

NEW YORK — The stock market staged a huge rally Thursday after investors got the aggressive economic help they wanted from the Federal Reserve.

The Dow Jones industrial average spiked more than 200 points and cleared 13,500 for the first time since the beginning of the Great Recession. The average is within 625 points of its all-time high.

The Fed said it would spend $40 billion a month, for as long as it takes, to stimulate the economy by buying mortgage securities – and perhaps buy more if the job market doesn't improve.

The central bank also extended its pledge of super-low short-term interest rates into 2015, extended a program to drive down long-term rates and promised to maintain "highly accommodative" policy even after the economy strengthens.

It was the package known as QE3 – a third round of quantitative easing, in market-speak. And it was just what investors were hoping for.

"They're saying that the punch bowl, the fuel for the economy, isn't going away – it's going to be here as long as you need it," said Tony Fratto, a former aide to President George W. Bush and managing partner at Hamilton Place Strategies, a policy consulting firm in Washington.

The Dow closed up 206.51 points, the seventh-biggest gain this year, at 13,539.86, its highest close since the last days of December 2007, the first month of the recession.

The broader Standard & Poor's 500 index was up 23.43 points at 1,459.99, also its highest since December 2007. The Nasdaq composite index, which has been trading at its highest levels since 2000, was up 41.52 at 3,155.83.

Good morning traders!

In the US last night, the Dow rose 207 points at 13,540, the Nasdaq gained 42 points at
3,156 and the S&P500 added 23 points at 1,460 after the Fed announced QE3.

In Asia today, the Nikkei was recently up 193 points at 9,187.97, while the Hang Seng
ended the morning ahead 535 points at 20,582.

WTI crude oil traded at $98.95 a barrel and Brent crude at $116.90.

Gold settled at $1,775 an ounce.

Happy Friday!

G.

PS: Thanks for the detail magicjoe :)

End-of-day Market Overview

Have a great weekend all! Thanks for your company. :)

G.