Stocks Reach Record Highs Following Fed Announcement

The markets expected the Fed's tapering of stimulus program

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Stock markets surged this afternoon, following the Federal Reserve’s announcement that it would trim its bond-buying program by $10 billion per month going forward.

The Dow Jones Industrial Average rose 293.54 points, or 1.85%, to hit a record high of 16,168.29, while the S&P 500 reached its own all-time high of 1,810.70 after climbing 1.66%.

While the markets were jittery last summer when Fed Chairman Ben Bernanke hinted that it might begin tapering its stimulus program, they were more prepared for the move this time around. As Chris Gaffney, senior market strategist at EverBank, told CNBC,”Investors are looking past the taper and looking at the strength of the economy that is perceived with this news.”