Stocks End at Record as Fed Maintains Stimulus

U.S. stocks rallied to record highs on Wednesday after the Federal Reserve decided against trimming its bond-buying stimulus program. The Dow Jones Industrial Average was up 147.21 points, or 0.95%, at 15,676.94. The S&P 500 index added 20.76 points, or 1.22%, to 1,725.52. Both indexes surpassed their Aug. 2 records, while the Nasdaq Composite traded at a 13-year high, up 37.94 points, or 1.01%, at 3,783.64.

The U.S. Federal Reserve said on Wednesday that it would continue buying bonds at an $85 billion monthly pace for now, expressing concerns that a sharp rise in borrowing costs in recent months could weigh on the economy.

A White House official said on Wednesday that Federal Reserve Vice Chair Janet Yellen is the front-runner to take over the top job at the U.S. central bank when Ben Bernanke steps down, the strongest indication yet of her likely
nomination.

BlackBerry Ltd is preparing to make deep cut to its workforce by the end of the year that could lead to slashing the company’s headcount by up to 40 percent, the Wall Street Journal said on Wednesday.

Union members who work for American Airlines and US Airways Group (LCC) rallied on Capitol Hill on Wednesday, urging the U.S. Justice Department to drop its opposition to a planned merger between the two airlines.

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