Wall Street surges to records on taper announcement December 19, 2013 - 7:47AM US stocks have surged to new records after the US Federal Reserve modestly scaled back its bond-buying program in a much-anticipated decision. The Dow Jones Industrial Average soared 292.71 (1.84 per cent) to 16,167.97, while the broad-based S&P 500 jumped 29.65 (1.66 per cent) to 1,810.65. Both were records. The tech-rich Nasdaq Composite index rose 46.38 (1.15 per cent) to 4,070.06. The Fed said it would scale back its bond-buying program from $US85 billion ($95.7 billion) to $US75 billion starting in January due to conditions ""consistent with growing underlying strength in the broader economy,"" according to a statement by the Federal Open Market Committee (FOMC). But the move to scale back the purchases was accompanied by a decision to extend the period of very-low interest rates.The move means the current near-zero rate will be in place ""well past the time"" that the unemployment rate declines below 6.5 per cent,"" said the FOMC communique. Bernanke plays Santa for investors In the end, it was a bit like the little boy who called wolf: the markets had ducked and weaved so many times at the prospect of the US Federal Reserve starting to taper its $US85 billion ($95.7 billion) a month quantitative easing cash splash that the actual news that the taper had begun was not just a yawn, it was a relief.