Wall Street Jumps a Day After Fed Decision

Stocks surged in the United States, following financial markets in Europe and Asia, while the dollar weakened Thursday as investors absorbed the impact of the Federal Reserve’s decision to buy more government securities to stimulate the economy.

The Fed’s announcement Wednesday that it would purchase $600 billion in Treasuries had been long anticipated in the financial markets, although the amount was slightly higher than the $500 billion that many had forecast.

Equities had risen since early September, partly in anticipation of the announcement, pricing in expectations as time went on. While Wednesday’s reaction on Wall Street was muted, the 26.41 point increase in the Dow was enough to send the index to its highest close in two years.