Stocks jump after Fed announcement
NEW YORK -- Stocks jumped after the Federal Reserve said it would keep interest rates low as long as the unemployment rate stays above 6.5%.
The Dow Jones industrial average rose 65 points, or 0.5%, to 13,314 in midday trading.
The broader Standard & Poor’s 500 index gained 10 points, or 0.7%, to 1,438.
The technology-heavy Nasdaq rose 6 points, or 0.2%, to 3,028.
The Fed also announced it would spend $45 billion a month buying Treasury bonds to keep long-term rates low.
The central bank has embarked on large-scale bond buying as a way to lure investors into riskier assets such as stocks.
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