The three major U.S. indexes surged today, breaking multi-year records after Federal Reserve Chairman Ben Bernanke announced the central bank would prolong reinvestment of proceeds from maturing securities and assured there were no immediate plans to tighten interest rates.
The Dow Jones Industrial Average shot up 95.59 points, or 0.8 percent to 12690.96, while the Standard & Poor's 500-stock index added 8.42 points, or 0.6 percent, to 1355.66. The Nasdaq Composite tacked on 22.34 points, or 0.8 percent, to 2869.88.
Bernanke’s statement elucidated the Fed’s intention to continue with monetary stimulation after the latest bond buying and the market’s have responded positively.
Tech stocks made major gains today with shares of Amazon (NASDAQ:AMZN) up 8 percent at close after sales were higher than expected. JDA Software Group Inc. (NASDAQ: JDAS) also added 12.6 percent as a result of earnings in excess of Wall Street expectations. Polycom Inc. (NASDAQ: PLCM) closed 4.71 percent higher, continuing to rally following its sunny earnings report last week.
Breaking patterns for the broader sector, chip maker Broadcom Corp. (NASDAQ: BRCM) fell 12.3 percent have releasing forecasts for second-quarter sales that were beneath Wall Street expectations.
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