NEW YORK (AP) — 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 purchases, a program that has been in place since December 2012.