US stocks soar after Fed says economy is improving

Friday, December 13, 2013, Vol. 37, No. 50

NEW YORK (AP) — Stocks are surging after the Federal Reserve decided the economy was strong enough for it to reduce its stimulus efforts.

The Fed voted Wednesday to cut its $85 billion in monthly bond purchases by $10 billion, starting in January.

The Dow Jones industrial average soared 293 points, or 1.9 percent, to 16,168. The Standard & Poor's 500 index jumped 29 points, or 1.7 percent, to 1,810.

The Dow and S&P 500 were back at record highs.

The Nasdaq composite rose 46 points, or 1.2 percent, to 4,070.

Ford slumped 6 percent after issuing a three-year profit forecast that came in short of investors' expectations.

The yield on the 10-year Treasury note held steady at 2.88 percent.