Dow rallies after Fed statement, up 429 points

[thecrow]

Source: AP

NEW YORK (AP) - Stocks are rising at the closing of trading after the Federal Reserve said it has discussed policy moves it can make to spur the economy. The Fed also said growth has been slower than expected.

The Dow Jones industrial average is closing up 429 points, or 4 percent, to 11,239.77.

Stocks rallied in the last hour of trading. Stocks initially fell after the Fed made its statement, which included a pledge to keep interest rates at their record low until at least the middle of 2013.

The S&P 500 is up 53, or 4.7 percent , to 1,172.53. The Nasdaq is up 124, or 5.3 percent, to 2,482.52



Read more: http://apnews.excite.com/article/20110809/D9P0PCN80.html

[DJ13]

1. The Fed basically said the economy will suck the next year or two

(The no interest increases seen until 2013)

Yep, thats a good reason to rally.

:sarcasm:

[indurancevile]

5. doesn't the no interest thing mean us securities wouldn't be paying what

traders might have hoped they would following the s&p downgrade?

theoretically, if us bonds are dubious they have to raise interest rates to get people to buy them.

a bunch of people fled to treasuries after the announcement but then bernake says interest rates won't rise & now stocks are up.

i don't know, just speculating.

[Javaman]

2. Riiiiiide my see saw...nt

[JAnthony]

3. Very True, that! Investors are the same fools as

voters.

[thecrow]

6. Well, I hope you neither invest or vote. then

[jwirr]

4. Again we asked to accept their plan without any details. Does this

mean more money for the banksters? I am glad the market rallied but I do not trust the Fed.