Stocks Rally as Fed Launches QE3
Stocks surged in trading today, finishing at multi-year highs, as the Federal Reserve announced a new bond buying program to spur economic growth.
The Dow Jones ended the day 1.55% higher at 13,539.86, the S&P 500 ended the day 1.63% higher at 1,459.99, and the Nasdaq ended the day 1.33% higher at 3,155.83.
Stocks got off to a sluggish start earlier today as investors remained on the sidelines ahead of Fed’s announcement. Investors were hoping that the Fed will announce further easing measures to support the economy.
The Fed did not disappoint market participants as it announced a new round of bond buying program. The Fed said that it would buy $40 billion of mortgage-backed debt each month until there is a significant improvement in the labor market. Fed Chairman Ben Bernanke said that the central bank is looking for ongoing, sustained improvement in the labor market.
All sectors in the S&P 500 finished the day in green following Fed’s announcement. Basic Materials and Energy sectors led the gains in the S&P 500 today, ending the day 2.37% and 2.04% higher, respectively. Financials also surged, ending the day 1.89% higher. Industrials ended the day 1.13% higher, while Conglomerates ended the day 1.19% higher.
Among the major gainers in trading today were Apple Inc. (NASDAQ:AAPL), which ended the day 1.97% higher at $682.98, Equinix Inc. (NASDAQ: EQIX), which ended the day 7.48% higher at $200.50, Bank of America Corporation (NYSE: BAC), which ended the day 4.79% higher at $9.40, Alpha Natural Resources Inc. (NYSE: ANR), which ended the day 12.13% higher at $8.23, and Freeport-McMoRan Copper & Gold Inc. (NYSE: FCX), which ended the day 4.21% higher at $41.79.
Earlier European markets ended mostly lower, with the EURO STOXX 50 Index falling 0.84%. Asian markets had ended on a mixed note overnight, with the Nikkei 225 Index in Japan closing 0.39% higher, and the Hang Seng Index in Hong Kong closing 0.14% lower.
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Post Written By: Ed Liston
Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications. He is widely quoted in various financial publications on the Internet. When Ed is not writing about stocks, investing in stocks, talking about stocks, or otherwise doing something stock related, he likes to go sailing and fishing in his yacht.
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