New York — The stock market is up sharply after the Federal Reserve's surprise decision to dial back its economic stimulus, citing a stronger job market.

The Fed voted Wednesday to reduce its $85 billion in monthly bond purchases by $10 billion, starting in January. The Fed has been buying that amount of bonds for a year.

The Dow Jones industrial average was up 151 points, or 1 percent, to 16,028 as of 2:10 p.m. Eastern. It was up 47 points shortly before the Fed's announcement.

The Standard & Poor's 500 index rose 11 points, or 0.6 percent, to 1,792. The Nasdaq composite climbed five points, or 0.1 percent, to 4,028.