The U.S. investors after some indecision decided that the new round of central bank bond purchases provides better prospects for companies.
Immediately, the reaction was very volatile, but after an hour of trading both Dow Jones and S&P 500-index 1 are percent higher than before the announcement by the central bank.
Federal Reserve will increase the acquisition of long-term bonds by absorbing mortgage bonds for 40 billion U.S. dollars a month. And without putting an end date on acquisitions. Moreover, continues the previous purchase program.
It is especially the banks, which rises. Bank of America is up 3.5 percent, JPMorgan Chase in plus 2 percent.
But commodity shares like aluminum producer Alcoa are also in front with an increase of 2.7 percent.
Also the price of the bankruptcy insured U.S. Treasuries fall heavily on the good news. Bankruptcy risk is deemed to be the lowest in more than five months, as measured by credit default swaps (CDS).
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