U.S. stocks rallied significantly on Friday, propelled by the Federal Reserve’s announcement of QE2, a second round of quantitative easing. The move aims to stimulate the economy through the purchase of $600 billion in long-term Treasury bonds.

Market Performance

The Dow Jones Industrial Average climbed to its highest level since May 2008. The S&P 500 also reached a multi-year peak, reflecting broad-based optimism across various sectors. The Nasdaq Composite Index joined the rally, driven by strong performance in technology stocks.

Key Drivers

• Federal Reserve Action: The QE2 announcement was the primary catalyst for the market surge.
• Investor Confidence: The Fed’s commitment to supporting the economy boosted investor confidence.
• Sector Gains: Financial, technology, and industrial sectors led the market gains.

Analysts suggest that the market’s positive response indicates a belief that the Fed’s actions will effectively stimulate economic growth and corporate earnings.