Stocks rise after Fed says it will dial back aid for economy

Friday, October 29, 2021, Vol. 45, No. 44
The Associated Press

Stocks climbed to more record highs Wednesday after the Federal Reserve said it will begin dialing back the extraordinary aid for the economy it has been providing since the early days of the pandemic.

The Fed said it will begin reducing its $120 billion in monthly bond purchases in the coming weeks by $15 billion a month.

The central bank's announcement was in line with what markets expected.

The S&P 500 rose 0.6%, the Dow Jones Industrials rose 0.3% and the Nasdaq rose 1%.

Small-cap stocks outpaced the rest of the market.

Bond yields rose and crude oil prices fell.