Dow Up 201 on Fed News

Obama plan for 'bad bank' inspires confidence

By Nick McMaster, Newser Staff

Posted Jan 28, 2009 3:10 PM CST

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Dow Up 201 on Fed News — Specialist Michael Sollitto watches a television screen at a post on the floor of the New York Stock Exchange Wednesday, Jan. 28, 2009, as the Fed rate decision is announced. (AP Photo/Richard Drew)

The Fed’s announcement today that it will keep target rates near zero sustained a rally led by financials, the Wall Street Journal reports. Financials continued to rise off the Obama administration’s plan to create a “bad bank” to buy toxic assets, with the Financial Select Sector Fund, which tracks the sector, up 11.2%. The Dow closed up 200.72 points at 8.375.45. The Nasdaq jumped 53.44 to 1,558.34, and the S&P 500 climbed 28.38 to 874.09.
(Read more Dow Jones stories.)