May 24, 2013
Fed's move ignites Wall Street, as European shares end lower
US stocks surged to multi-year highs on Thursday after the Federal Reserve announced an aggressive plan to stimulate the economy, encouraging investors to dive back into the market.
The Dow Jones industrial average ended up 206.51 points, or 1.55 percent, to 13,539.86. The Standard & Poor's 500 Index closed up 23.43 points, or 1.63 percent, to 1,459.99. The Nasdaq Composite Index rose 41.51 points, or 1.33 percent, to 3,155.83.
European stocks fell, taking a pause in their sharp three-month rally, as investors awaited to see if the US Federal Reserve would unveil further stimulus measures which could further boost appetite for risky assets.
The euro zone's blue chip Euro STOXX 50 index ended 0.8 percent lower at 2,543.22 points, retreating from a near-six month high hit in the previous session, while the FTSEurofirst 300 index of top European shares closed 0.2 percent lower at 1,106.27 points.
Japan's Nikkei average rose today to end just below the key 9,000 mark on mounting expectations of fresh stimulus from the US Federal Reserve, with big gains for shippers and Apple suppliers buoying the market.
Investors covered bearish bets ahead of the Fed decision later in the day as they wait to see if it will launch another round of bond-buying to kick start a flagging economic recovery in the United States.
The Nikkei advanced 0.4 percent to 8,995.15, but faced resistance at its 200-day moving average at 8,998.64. The broader Topix index added 0.3 percent to 744.23. Nearly 1.29 billion shares changed hands, down from yesterday's 1.55 billion and last week's average of 1.61 billion.