March 8, 2014
Wall St turns positive after Fed announces tapering
US stocks staged an explosive rally today, driving the Dow and the S&P 500 to all-time closing highs after the Federal Reserve announced it would start to unwind its historic stimulus.
Stocks extended losses just after the announcement, but quickly turned higher and began rallying. The day's move marked the biggest swing from the day's high to the low for the S&P 500 in two years. All 10 S&P 500 sector indexes ended higher, with all but information technology gaining more than 1 percent, and the S&P 500 financial index rising 2.4 percent.
The Dow Jones industrial average rose 292.71 points or 1.84 percent, to end at 16,167.97, a record closing high. The S&P 500 gained 29.65 points or 1.66 percent, to finish at 1,810.65, also a record closing high. The Nasdaq Composite added 46.384 points or 1.15 percent, to close at 4,070.064.
European shares also advanced, more than recouping the previous session's losses, as investors positioned for the conclusion of a two-day US Federal Reserve policy meeting.
The FTSEurofirst 300 closed up 0.9 percent at 1,259.06 points, albeit in light volume, with some investors reluctant to become too committed before hearing the Fed's intentions later in the day.
The Euro STOXX 50 rose 1.1 percent to 2,975.09 points.