(NEW YORK) — The U.S. stock markets liked what they heard from the Federal Reserve Thursday. The Dow climbed more than 200 points on news the central bank plans to step in if the job market does not improve.
The Dow closed at 13,539.86, up 206.51 points, or 1.6 percent. Thursday’s close is the highest since Dec. 28, 2007.
Both the S&P and NASDAQ closed higher as well, up 23.43 points and 41.52 points, respectively.
Higher stock prices were in part what the Fed was hoping to achieve with Thursday’s announcement. The central bank will purchase $40 billion per month in mortgage-backed securities and extend the average maturity of its securities holdings through the end of the year. Federal interest rates will remain at zero to 1/4 percent through mid-2015, the Fed said.
Copyright 2012 ABC News Radio
Heather Long, CNN
Magdala Louissaint, KPVI
Kathryn Vasel, CNN