CLOSING BELL: September 13th: DJIA: 13,539.86 | UP 206.51 | +01.55%
OIL: $98.31, UP 1.30, +1.34%
GOLD: $1,772.10, UP 38.40, +2.21%
GASOLINE (US Avg): $3.869, UP .011
Wanfeng Zhou, Reuters – Stocks surged to multi-year highs on Thursday after the Federal Reserve announced an aggressive plan to stimulate the economy, encouraging investors to dive back into the market.
The Dow and the S&P 500 both closed at their highest levels since December 2007, while the Nasdaq ended at the highest since November 2000.
Major market names were big winners, with Apple Inc (AAPL.O), the most valuable U.S. company, ending at an all-time closing high and No. 2 Exxon Mobil (XOM.N), closing at a four-year high. Nearly 600 shares on the New York Stock Exchange and Nasdaq touched 52-week highs on the day.
“There has been a lot of money that’s been sitting on the sidelines, and the Fed action is what spurred people to get in,” said Tim Ghriskey, chief investment officer at Solaris Asset Management in Bedford Hills, New York. “The spike in volume is certainly heartening.”
Total volume was 8.14 billion shares, the busiest day of trading since June 22 and above last year’s daily average of 7.84 billion.
In a significant shift in monetary policy, the Fed said it would buy $40 billion of agency mortgage debt per month and pledged to maintain it until the U.S. unemployment rate, currently at 8.1 percent, significantly improves.
“The employment situation … remains a grave concern,” Fed Chairman Ben Bernanke told reporters. “While the economy appears to be on a path of moderate recovery, it isn’t growing fast enough to make significant progress reducing the unemployment rate.”
Read the rest of this article at Reuters here.
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