New York Report: US stocks rise on taper news

US stocks finished higher yesterday, rebounding from a sharp two-day selloff, after minutes from the last Federal Reserve meeting showed policymakers have started to detail how the central bank will end its easy monetary policy.

The Fed indicated it will end its bond purchases in October and appeared near agreement on a plan to manage interest rates in the future, according to the minutes.

The Dow Jones industrial average rose 78.99 points or 0.47 per cent, to 16,985.61. The S&P 500 gained 9.12 points or 0.46 per cent, to 1,972.83. The Nasdaq Composite added 27.57 points or 0.63 per cent, to 4,419.03.

Alcoa was one of the S&P 500’s biggest advancers, ending up 5.7 per cent at $15.69 after hitting $15.76, the highest since July 2011. The aluminium producer had reported forecast-topping earnings after hours on Tuesday.