Global markets soared higher overnight as the Fed did what many expected it to do and that was announce plans to taper stimulus.
Citing an improved economic outlook, the Fed said it will begin reducing the amount of its monthly bond buying program by $15 billion, beginning in January.
Stocks had opened higher on the back of data showing Americans built more homes than expected in November.
The Fed announcement ignited a burst of buying late in the US session and put the Dow and S&P500 within touching distance of fresh all-time highs.
The reaction in commodity markets to the Fed taper announcement was a little more subdued, with gold and oil packing on modest gains.
Gold traded in a fairly tight range, with Fed tapering having already been priced into the precious metal.
The US dollar was a key mover in currency markets, leaping against the yen on bets the Bank of Japan may stimulate further now that the Fed has begun winding down its own stimulus program.
The greenback wasn’t as strong against other currencies, however, as the Fed revealed that it was likely to keep interest rates at zero even if the jobless rate fell below its original threshold of 6.5%.
There is no major economic data due for release today.