Tapering sends US stocks to record highs

US stock markets set new records after its Federal Reserve chairman Ben Bernanke announced that it would scale back its monthly cash injection via a bond-buying programme from $85bn to $75bn. This indicates the Fed intends keeping interest rates low. The Dow rose 1.8% to 16 168 and the S&P500 was up 1.7% at 1 810 – both new all-time highs. The Nasdaq was up 1.2% to 4 070. Banking and residential construction shares were among the leaders.