(USA TODAY) -- Stocks jumped Wednesday as the S&P 500 shot to a record close after the Federal Reserve cut another $10 billion from its monthly bond purchases, citing an improving U.S. job market.
It was the fourth straight day of gains for the major indexes.
The Standard & Poor's 500 index gained 14.99, or 0.8%, to close at a record 1956.99, according to preliminary calculations. That beat the previous closing high of 1951.27 set June 9.
The Dow Jones industrial average added 98.13, or 0.6% to 16,906.62 and the Nasdaq composite index rose 25.60, or 0.6% to 4362.84. The Nasdaq hit a new closing high for the year.
As expected, the Federal Reserve pared its monthly bond-buying program, trimming the total amount spent by the central bank from $45 billion a month to $35 billion. The central bank also reduced its forecast for U.S. economic growth this year but also lowered its estimate for the unemployment rate.
Fed policymakers are cutting back on the "easy money" as the economy and labor market continue to improve.
But the central bank's policymakers are rethinking the pace of that improvement. They scaled back their projection for the growth of the economy this year to a range of between 2.1% to 2.3%. That's way down from the previously forecast growth of 2.8% to 3%.
Bond prices jumped as the yield on the 10-year Treasury note fell to 2.59% from 2.65% Tuesday.
Crude oil prices are dipped slightly despite militants in Iraq laying siege to that nation's largest oil refinery. Oil fell 21 cents to $106.15 a barrel.
In Europe, stocks closed mixed. Down was the CAC 40 of France, off 0.1% to 4530.37. Climbing were Germany's DAX, up 0.1% to 9930.33, and the FTSE of Britain, 0.2% higher to 6778.56.
Stocks in Asia ended mixed. The Nikkei 225 of Japan climbed 0.9% to 15,115.80. Hong Kong's Hang Seng lost 0.1% to 23,181.72.
Contributing: The Associated Press