Nasdaq hits 10-year high after Fed rate decision
NEW YORK—The Nasdaq Composite index hit its highest level in more than 10 years Wednesday as US stocks pushed upward after the Federal Reserve left interest rates unchanged.
The tech-rich Nasdaq added 22.34 points (0.78 percent) at 2,869.88, the highest close since December 2000, when it was plummeting as the dot-com bubble famously burst, plunging the country into recession.
Riding news that the Fed would not raise ultra-low interest rates, the Dow Jones Industrial Average also surged, adding 95.59 points (0.76 percent) to finish at 12,690.96.
The broad-market S&P 500 advanced 8.42 points (0.62 percent) to 1,355.66.
The blue-chip Dow and the S&P 500 finished at their highest levels since 2008, in May and June, respectively.
“US stocks moved solidly higher on the day, after receiving a nice afternoon jolt from the comments of Fed chairman Ben Bernanke in the inaugural post-policy meeting news conference,” Charles Schwab analysts said in a client note.
The Fed, citing the economy’s only “moderate” recovery, also kept the door open for more economic stimulus, while saying its current $600 billion program would be allowed to run its forecast course through June.
Helping to underpin the market, on the ninth day of a solid rally, was a report that durable goods orders had risen 2.5 percent in March, a sign that US industry continues to expand and companies are investing in and upgrading equipment.
“Today’s report brought two important positive signals – the rise in the March core component and a significant upward revision of the February figure,” said analysts at Natixis.
“Indeed, the ‘core’ nondefense ex-aircraft capital goods orders which are supposed to be an indicator of the business spending on equipment and software got back to a strong upward trend observed at the end of 2010.”
Among companies reporting earnings, shares of oilfield operator Baker Hughes leaped 4.3 percent to $77.28 after its first-quarter net income beat estimates handily.
Boeing rose 0.7 percent to $76.12 after posting better-than-expected quarterly earnings.
Corning shares surged 2.3 percent to $21.08 on stronger-than-expected revenues from sales of glass for the huge LCD television and computer monitor industry.
Online retailer Amazon jumped 7.9 percent to $196.63 as investors shrugged off disappointing earnings and focused on higher sales forecasts.
The bond market slumped. The yield on the 10-year Treasury rose to 3.37 percent from 3.32 percent late Tuesday. The 30-year Treasury yield climbed to 4.46 percent from 4.40 percent.
Bond yields and prices move in opposite directions.
