The Clinton Herald, Clinton, Iowa

Business & Technology

September 19, 2013

Stock market sets record after Fed keeps stimulus

NEW YORK — The stock market hit a record high Wednesday as investors cheered the Federal Reserve’s surprise decision to keep its economic stimulus program in place.

Stocks traded slightly lower throughout the morning, but took off immediately after the Fed’s decision in the early afternoon. Bond yields fell sharply — their biggest move in nearly two years. The price of gold had its biggest one-day jump in four years as traders anticipated that the Fed’s decision might cause inflation.

Fed policymakers decided to maintain the central bank’s $85 billion in monthly bond buying, a program that had been in place in one form or another since late 2008. The program is designed to keep interest rates low to spur economic growth and has been a driver of the four-and-a-half-year bull run in stocks.

While the U.S. economy appeared to be improving, the bank’s policymakers “decided to await more evidence that progress will be sustained” before deciding to slow the bond purchases. The bank also cut its full-year economic outlook for this year and next.

Stock traders shrugged off the Fed’s dimmer outlook and focused on the prospect of continued stimulus.

The S&P 500 surged 20.76 points, or 1.2 percent, to 1,725.52, slicing through its previous all-time high of 1,709.67 set on Aug. 2.

The Dow Jones industrial average jumped 147.21 points, or 1 percent, to 15,676.94, also above its previous record high of 15,658.36 from Aug. 2.

The Nasdaq composite rose 37.94 points, 1 percent, to 3,783.64.

The fate of the Fed’s economic stimulus program has been the biggest question on Wall Street for months. It was widely expected that the Fed would cut back on its bond buying at the September meeting.

Tom di Galoma, a bond trader at ED&F Man Capital, said he was “completely shocked” that the Fed decided to wait.

Text Only
Business & Technology
  • Smartphone kill switches are coming

    Smartphones need kill switches. It's a relatively easy solution to the pricey (and irritating) problem of smartphone theft. But who would have thought that the big carriers would team up with Apple, Google, Microsoft, Nokia, Samsung and lots of other manufacturers to voluntarily begin adding the technology by July 2015? The cooperative spirit! It makes so much sense!

    April 19, 2014

  • Minnick New director at Ashford CLINTON -- Ashford University has appointed a new vice president/campus director of its Clinton campus. Charlie Minnick has been appointed for the position. He has been in the position on an interim basis since Jan. 1. Ashford University Provost Lori

    April 19, 2014 1 Photo

  • McEleney McEleney elected to insurance board CLINTON -- A car dealership owner recently earned a spot on a national insurance board. John McEleney, of Clinton and owner of McEleney Motors, was elected to the Board of Directors of the Federated Insurance Companies. The election took place this w

    April 19, 2014 1 Photo

  • Biggest student loan profits come from grad students

    This week, the Congressional Budget Office projected that the federal government would earn roughly $127 billion from student lending during the next 10 years.

    April 18, 2014

  • NASA's moon-orbiting robot crashes down as planned

    April 18, 2014

  • Local farmers honored DES MOINES -- Iowa Secretary of Agriculture Bill Northey has announced that Marty and Michael Burken who run Blue Hyll Dairy in rural Clinton County have been named the April winners of the "Gary Wergin Good Farm Neighbor Award." Northey will present

    April 18, 2014

  • 4-19-14 FBLA photo CHS Future Business Leaders of America attend conference Thirty members of the Clinton High School Future Business Leaders of America attended their spring leadership conference at the Marriott Coralville from March 26-29. Students attending the conference competed against other Iowa students in state and

    April 17, 2014 1 Photo

  • U.S. stock market rebounds after choppy day A stock market swoon turned into a comeback Tuesday. Stocks managed a late-afternoon rebound for the second time in two days as investors seemed to brush off a report of lower confidence among homebuilders and simmering tensions in the Ukraine. The l

    April 16, 2014

  • Document shredding offered CLINTON -- A Clinton bank will provide document shredding this weekend. The free service will be held from 9 to 11 a.m. Saturday at Citizens First Bank's office at 1442 Lincoln Way. This is the 10th year the bank has offered this service, Citizens Fi

    April 15, 2014

  • Why Facebook is getting into the banking game

    Who would want to use Facebook as a bank? That's the question that immediately arises from news that the social network intends to get into the electronic money business.

    April 14, 2014

Facebook