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Stocks soar after Fed says it will cut stimulus

Stocks are cautious Wednesday as investors await the

Stocks are cautious Wednesday as investors await the results of the monthly, two-day Federal Reserve policy meeting. The street outside the New York Stock Exchange got a dusting Tuesday during a snowstorm. (Dec. 17, 2013) Credit: Getty Images

The stock market is up sharply after the Federal Reserve's surprise decision to dial back its economic stimulus, citing a stronger job market.

The Fed voted Wednesday to reduce its $85 billion in monthly bond purchases by $10 billion, starting in January. The Fed has been buying that amount of bonds for a year.

At midafternoon on Wall Street, the Dow Jones industrial average was up 158.8 points at 16,034.1. It had been up 47 points shortly before the Fed's announcement. The Standard & Poor's 500 index rose 12.6 points to 1,793.8, and the Nasdaq composite climbed 10.1 points to 4,034.6.

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