Stocks, bonds rise sharply as Fed keeps stimulus
NEW YORK - Investors plowed money into U.S. stocks and bonds after the Federal Reserve's surprise decision to keep its economic stimulus in place.
The news sent the Standard & Poor's 500 to a record high. It was up 10 points, or 0.7 per cent, to 1,715 shortly after the Fed announced its decision at 2 p.m. Eastern time (2:00 am Singapore time), surpassing the all-time high of 1,709 set on Aug. 2.
The Dow Jones industrial average was up 126 points, or 0.8 per cent, to 15,650. It was down 44 points just before the Fed said it wouldn't make changes to its bond-buying program, Associated Press said.
The yield on the 10-year Treasury fell sharply as investors bought U.S. government bonds. The yield fell to 2.76 per cent from 2.87 per cent a minute before the Fed released its statement.