Dow surges to record as investors await Fed's stimulus decision

Traders work on the floor of the New York Stock Exchange at the end of the trading day Tuesday. The consensus among investors is that the Federal Reserve will decide today to continue its bond-buying stimulus program for the time being, sparking Tuesday’s rally.

Getty Images

Traders work on the floor of the New York Stock Exchange at the end of the trading day Tuesday. The consensus among investors is that the Federal Reserve will decide today to continue its bond-buying stimulus program for the time being, sparking Tuesday’s rally.

NEW YORK — Investors drove the Dow Jones Industrial Average to an all-time high Tuesday on expectations that the Federal Reserve will keep its economic stimulus program in place.

The Dow rose 111.42 points, or 0.7 percent, to 15,680.35. The Standard and Poor's 500 index rose 9.84 points, or 0.6 percent, to 1,771.95, its seventh record high this month.

The Fed is in the middle of a two-day policy meeting at which it's expected to maintain its $85 billion worth of bond purchases every month. That program is aimed at stimulating economic growth by keeping borrowing rates very low. The Fed will announce its decision this afternoon.

"The expectation that the Fed remains clearly on hold is the catalyst for this march higher," said Quincy Krosby, a market strategist at Prudential Financial.

The Nasdaq stock market, which also pushed higher, was hit with another glitch. Nasdaq indexes weren't updated from 11:53 a.m. to 12:37 p.m. because of a technical problem that was caused by human error, the exchange operator said in a statement. Trading of Nasdaq-listed stocks wasn't affected.

On Sept. 4, the Nasdaq had a brief outage in one of its quote dissemination channels, but trading wasn't disrupted. On Aug. 22, the exchange suffered a three-hour trading outage that was also attributed to problems with the exchange's price disseminating system.

Dow surges to record as investors await Fed's stimulus decision 10/29/13 [Last modified: Tuesday, October 29, 2013 8:56pm]

Copyright: For copyright information, please check with the distributor of this item, Associated Press.
    

Join the discussion: Click to view comments, add yours

Loading...