NEW YORK (CNNMoney)
After ending at record closing highs the previous day, the Dow and S&P 500 were down slightly in early trading. So was the Nasdaq.
All three indexes surged more than 1% after the Federal Reserve announced a modest scaling back of its stimulus program. Instead of pumping $85 billion per month into the markets through bond purchases, the Fed said it will scale the purchases back to $75 billion per month beginning in January.
Related: Federal Reserve finally tapers its stimulus
The Fed's decision to wind down -- or taper -- its stimulus program can be interpreted as a sign the economy is getting back on its feet and no longer needs as much assistance from the central bank.
That pleased investors all around, as the change isn't so drastic to start. But it also may satisfy Fed critics who believe the central bank would be in danger of creating runaway inflation if it did not begin to cut back on the accommodative polices that it instituted in response to the financial crisis.
Related: Fortune 500: Worst-performing stocks of 2013
In corporate news, Target (TGT, Fortune 500)shares were down in early trading after the retailer said that as many as 40 million people who shopped at Target stores in the three weeks after Thanksgiving may be affected by a breach of credit and debit card data.
Facebook (FB, Fortune 500)fell slightly after the social media company filed to sell 70 million shares, mostly to index funds that will be buying the stock once it is added to the S&P 500. That includes more than 41 million shares from co-founder and CEO Mark Zuckerberg.
Darden Restaurants (DRI, Fortune 500) missed on earnings, as its quarterly profit plunged from a year ago. The company also announced plans to spin off the Red Lobster chain, which experienced a slump in sales.
Related: IPO market expected to stay hot in 2014
Looking at stocks around the world, European markets rose by roughly 1.5% in their first opportunity to react to the Fed tapering news. Asian markets ended mixed. 
First Published: December 19, 2013: 9:52 AM ET
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