Dow and S&P 500 Close at All-Time Highs
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Spencer Platt/Getty Images(NEW YORK) — It was a record close for the stock market Wednesday after the Federal Reserve announced it would keep pumping money into the financial system.
“With unemployment still elevated, and inflation projected to run below the committee’s longer-run objective…the committee is continuing its highly accommodative policies,” Fed Chairman Ben Bernanke said Wednesday.
Bernanke’s comments sent the Dow up 147 points to a new record high. The S&P 500 also closed at a record high, and the NASDAQ reached a 13-year high.
“The reason that the market is reacting positively is because it loves this stimulus,” said Rebecca Jarvis, ABC News’ chief business and economics correspondent. “It’s, some would say, addicted to this stimulus. There are even market participants who say it’s a Hotel California – that you can check out, but you can never really leave this program.”
The Fed decided to keep $85 billion a month flowing because the job market is still lackluster. It also said fiscal policy, a possible government shutdown and a debt limit debate threaten to derail economic recovery.
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