Stock marketAll three major US indexes closed higher on Wednesday, with the Dow Jones finishing at a record high.

The?Dow Jones?rose 45.47 points to close at 16,580.84, four points above a previous high hit on 31 December 2013.

The?S&P 500?index increased 5.62 points to 1,883.95, and the?Nasdaq?climbed 11.01 points to 4,114.56.

Traders cheered a US Federal Reserve statement which indicated the central bank thought the US economy was improving.

At the end of a two-day meeting in Washington, the Fed said it would continue trimming its monthly bond-buying purchases by a further $10bn to $45bn, as the US economy continues to strengthen.

The assurance that the US economy was recovering came the same day official figures revealed that the US economy grew at a slow annual rate of 0.1% during the first quarter of 2014.

However, the Fed said the low growth rate was mostly due to seasonal factors that have now passed.

Company moves

Shares in social-networking messaging site?Twitter?fell $3.65, or 8.5%, to $38.97 after the?company published?disappointing user growth figures as part of its earnings release late on Tuesday.

eBay?also saw a slide in its stock price, after the online auction firm reported a first-quarter loss as a result of a large tax bill. Shares in the firm fell $2.71, or nearly 5%, to close at $51.83.

US nuclear power generator?Exelon Corp?announced a plan to buy power company?Pepco Holdings?for $6.83bn in cash, offering a 20% premium to Pepco’s closing price on Tuesday.

As a result, Pepco jumped 17.5%, while Exelon fell 3%.

Source BBC


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