Wall Street buoyed by Fed action
US stocks have closed higher, propelled for a second day by the Federal Reserve's plans to try to energise the economy. The Dow Jones industrial average hit its highest close since the pre-crisis days of November 2007.Apple hit its highest stock price of all time while starting to take orders for the iPhone 5.
But there were unsettling signs. The Fed said US industrial production fell in August by the largest amount in more than three years. High fuel prices drove up consumer prices in August by the most in three years.
On the New York Stock Exchange, two rose for every stock that fell. Volume was heavy. About 4.9 billion shares were traded.
The Dow rose as much as 113 points before pulling back. It ended up 53.51 points to 13,593.37. It is a 4% rally away from its all-time high of 14,164, reached on October 9 2007.
The Standard&Poor's 500 rose 5.78 to 1,465.77, almost exactly 1,000 points below its all-time high. The Nasdaq composite index, which has been trading at the highest levels since 2000, climbed 28.12 to 3,183.95.
The Russell, which tracks 2,000 stocks with market values below five billion dollars, closed at 854.70, slightly under its all-time high of 865.29 on April 29 2011. Because the index contains small companies, it is seen as a gauge of investors' risk tolerance.
Apple, the most valuable company in US history, blew through its own all-time high and neared 700 dollars per share.
Markets rallied around the world in places where traders were reacting for the first time to the central bank announcement. Stocks climbed more than 2% in India and France and almost 2% in Japan and Germany.
The gains came on top of a 206-point climb for the Dow on Thursday, when the Fed laid out additional plans to try to energize the economy, including buying 40 billion dollars a month in mortgage bonds for as long as necessary.
The Standard&Poor's 500 rose 5.78 to 1,465.77, almost exactly 1,000 points below its all-time high. The Nasdaq composite index, which has been trading at the highest levels since 2000, climbed 28.12 to 3,183.95.
The Russell, which tracks 2,000 stocks with market values below five billion dollars, closed at 854.70, slightly under its all-time high of 865.29 on April 29 2011. Because the index contains small companies, it is seen as a gauge of investors' risk tolerance.
Apple, the most valuable company in US history, blew through its own all-time high and neared 700 dollars per share.
Markets rallied around the world in places where traders were reacting for the first time to the central bank announcement. Stocks climbed more than 2% in India and France and almost 2% in Japan and Germany.
The gains came on top of a 206-point climb for the Dow on Thursday, when the Fed laid out additional plans to try to energize the economy, including buying 40 billion dollars a month in mortgage bonds for as long as necessary.
© 2013 Press Association