Stocks, bonds rise sharply as Fed keeps stimulus

NEW YORK (AP) — Investors plowed money into stocks and bonds after the Federal Reserve’s surprise decision to keep its economic stimulus program in place.

The news sent the Standard & Poor’s 500 index and the Dow Jones industrial average to record highs.

Bond yields fell sharply after the central bank said it would continue its huge bond-buying program.

Gold prices also rose and the dollar fell as investors anticipated that the continuation of the program might lead to inflation.

The S&P 500 was up 16 points, or 1 percent, to 1,721 in afternoon trading. The Dow rose 114 points, or 0.7 percent, to 15,641.

The yield on the 10-year Treasury note fell to 2.76 percent from 2.87 percent.

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