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Stocks jump after Fed announcement

December 12, 2012|By Andrew Tangel
  • On the floor of the New York Stock Exchange.
On the floor of the New York Stock Exchange. (Spencer Platt / Getty Images )

NEW YORK -- Stocks jumped after the Federal Reserve said it would keep interest rates low as long as the unemployment rate stays above 6.5%.

The Dow Jones industrial average rose 65 points, or 0.5%, to 13,314 in midday trading.

The broader Standard & Poor's 500 index gained 10 points, or 0.7%, to 1,438.

The technology-heavy Nasdaq rose 6 points, or 0.2%, to 3,028.

The Fed also announced it would spend $45 billion a month buying Treasury bonds to keep long-term rates low.

The central bank has embarked on large-scale bond buying as a way to lure investors into riskier assets such as stocks.

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