Fed policymakers decided to continue to trim bond purchases by another $10 billion a month
US stocks at Wall Street swung wildly on Wednesday, 30 April 2014 immediately after the release of the Federal Open Market Committee statement but moved decidedly higher. As expected, the Fed policymakers decided to continued to trim bond purchases by another $10 billion a month and left the key rates at zero, despite surprisingly grim economic growth in the first three months of the year.
The Dow Jones Industrial Average added 29 points, or 0.2%, to 16,564.77, and at session high surpassed the highest closing level, reached on Dec 31, 2013. The blue-chip index is set to finish April with a 1.5% gain. The Nasdaq Composite rose 8 points, or 0.2%, to 4,112.01. The index is set to end 1.1% lower for the month. The S&P 500 was 3 points, or 0.3%, higher at 1,883.80 and on track to notch a 1.4% gain for the month.
The Federal Open Market Committee has just released its latest policy statement, which calls for a $10 billion reduction to asset purchases, lowering the monthly total to $45 billion. In addition to the tapering announcement, the statement said economic activity picked up since the last meeting, with consumer demand rising 'more quickly.'
Equity indices saw little initial change as the S&P 500 slipped back to its flat line after trading two points above that level prior to the release.
Treasuries, meanwhile, held their levels, with the benchmark 10-yr yield staying at 2.66%.
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