Investing.com - U.S. stocks surged higherThursday as the FOMC announced significant stimulus measures to help bolster the U.S. economy.
At the close of U.S. trade, the Dow Jones Industrial Average surged 1.55%, the S&P 500 index jumped 1.49%, while the Nasdaq Composite index traded sharply higher up 1.33%.
Sparking the rally, the FOMC stated it will purchase $40 billion of mortgages monthly in an attempt to shore up the real estate market recovery.
In bearish news, the U.S. Department of Labor said the number of individuals filing for initial jobless benefits in the week ending September 8 rose by 15,000 to a seasonally adjusted 382,000, compared to expectations for an increase of 3,000 to 370,000.
The previous week’s figure was revised up to 367,000 from a previously reported 365,000.
Apple shares were up 1%, one day after unveiling its newest iPhone, the iPhone5, which has a bigger screen, a faster chip and access to speedier wireless networks. The company also introduced some new iPods.
Also in the tech sector, Intel dropped 0.97% and Advanced Micro Devices tumbled 2.57% after Citigroup lowered its recommendations on both firms.
Elsewhere, aerospace and defense giant Boeing saw shares decline 0.37%, after French and U.K. rivals, EADS and BAE Systems, announced that they were in talks about a potential merger to build an equal to Boeing that would balance civil and defense operations.
Commenting on the announcement, Boeing officials said earlier that a merger that would transform rival EADS into the world’s biggest aerospace business may be intended to win more sales in the U.S., the largest defense market.
In the energy sector, shares in Chesapeake tumbled 0.90%, after the oil major on Wednesday sold USD6.9 billion in oil and gas drilling, leasehold, pipeline and terminal assets deemed as “non-core”. Rival groups Chevron and Exxon Mobil were down 0.19% and 0.01% respectively.
Meanwhile, Abercrombie & Fitch advanced 0.69% amid reports activist investor Ralph Whitworth asked the company to cut back on spending and opening international stores.
Also on the upside, Pier 1 Imports rallied 2.25% after the furniture retailer raised its full-year guidance as same-store sales and store traffic saw a boost.
At the close of European trade, the EURO STOXX 50 dropped 0.84%, France’s CAC 40 declined 1.18%, while Germany’s DAX 30 retreated 0.45%
Investors are awaiting retail sales and the CPI from the U.S. on Friday.