U.S. stocks surged Thursday, with the Dow and S&P 500 crossing above their record closing highs, after Federal Reserve Chairman Ben Bernanke stressed during a speech Wednesday that monetary policy would remain accommodative for the foreseeable future.
Greg Morcroft, senior money editor at the International Business Times, discusses the psychological effects Bernanke has on the global financial markets.
Bernanke’s speech on Wednesday came after the release of the FOMC’s minutes from its June policy meeting, which showed that policy officials want further reassurances about the strength of the jobs market before scaling back on stimulus measures.
As of 3:50 p.m. Eastern, the Dow Jones industrial average .DJIA soared 176.37 points, or 1.15 percent, to 15,468.03. The S&P 500 Index .SPX was up 22.62 points, or 1.37 percent, to 1,675.24. The Nasdaq Composite Index rose 55.01 points, or 1.56 percent, to 3,575.7.