New York Report: Wall St surges on Fed move

US stocks staged an explosive rally yesterday, driving the Dow and the S&P 500 to all-time closing highs after the Federal Reserve announced it would start to unwind its historic stimulus.

While the Fed’s move came as a surprise to many in the market, it confirmed that the US economy was on firmer footing and put to rest the question of when the Fed would begin to scale back its bond-buying programme. “This is a vote of confidence in the economy and represents the first step toward monetary policy normalization,” said David Joy, chief market strategist at Ameriprise Financial.

The Dow Jones industrial average surged 292.71 points or 1.84 per cent, to end at 16,167.97, a record closing high. The S&P 500 gained 29.65 points or 1.66 per cent, to finish at 1,810.65, also a record closing high. The Nasdaq Composite climbed 46.384 points or 1.15 per cent, to close at 4,070.064.