Dow sets record close as Fed says rates to stay low
The Dow jumped to a record close Wednesday after the Federal Reserve reaffirmed that a key short-term interest rate will stay near zero for a “considerable time” after its bond-buying program ends next month.
Investors have been eagerly awaiting the Fed statement for clues on the timing and pace of interest rate hikes and were relieved the central bank maintained its current language on rates.
The Fed has maintained a near zero interest rate policy since the 2008 financial crisis, which has boosted stocks to record levels during a five-and-half-year bull market.
The Dow Jones industrial average rose 24.88 points, or 0.2%, to a record close of 17,156.85, and set an all-time intraday high of 17,221.11. It was the sixteenth record close for the blue chip index in 2014.
The Standard & Poor’s 500 index jumped back above the 2000 mark as it gained 2.59 points, or 0.1%, to 2001.57. The S&P 500 is about 6 points below its record close of 2007.71
The Nasdaq composite index rose 9.43 points, or 0.2%, to 4562.19.
The latest economic report gave the Fed more evidence that inflation remains a low threat as consumer prices fell last month. The consumer price index fell 0.2% in August, the Labor Department said Wednesday. It was the first drop in 16 months.
Overseas, Asian markets were mixed, with Japan’s Nikkei 225 losing 22.86 points, or 0.1%, to close at 15,888.67 while Hong Kong’s Hang Seng index climbed 240.4 points, or 1%, to 24,376.41 and the Shanghai Composite gained 11.34 points, or 0.5%, to 2307.89.
Source: Usatoday
