Stocks Soar after Fed’s Stimulus Cut

U.S. stocks closed near record levels on Wednesday after the Federal Reserve announced a small
reduction in its stimulus program, confirming that the U.S. economy was on firm footing. The Dow
Jones industrial average rose 293.71 points or 1.84%, to end at 16,167.97. The S&P 500 gained
29.65 points or 1.66%, to finish at 1,810.65. The Nasdaq Composite added 46.38 points or 1.15%, to
close at 4,070.06.

The U.S. Federal Reserve trimmed its aggressive bond-buying program on Wednesday but sought to
temper the long-awaited move by suggesting its key interest rate would stay at rock bottom even
longer than previously promised.

Oracle Corp. reported a drop in quarterly profit on Wednesday, but the technology giant beat Wall
Street estimates. Oracle reported fiscal second-quarter profit of $2.55 billion, or 56 cents a
share, compared with a profit of $2.58 billion, or 53 cents a share, for the year-earlier period.
Revenue rose to $9.28 billion from $9.09 billion.

FedEx Corp (FDX) posted a 14 percent rise in quarterly profit on Wednesday on stronger margins and
cost cuts, but results missed Wall Street estimates. Average daily volume at FedEx Ground rose 8
percent in the fiscal second quarter, slowing from the 11 and 10 percent growth in the previous
two quarters.