'Fast Money' Recap: The Fed's Bold Move Ignites Rally

The Fed's $1 trillion move to turn around the moribund housing market ignited the markets Wednesday.

The Dow Jones Industrial Average jumped 90.88, or 1.23%, to 7,486.58, while the S&P 500 rose 16.23, or 2.09%, to 794.35. The Nasdaq was up 29.11, or 1.9%, to 1,491.22.

The Fed announced plans Wednesday to buy $750 billion worth of government-guaranteed mortgage backed securities on top of the $500 billion worth it is already buying. It also said it will buy $300 billion worth of long-term Treasury securities in the next six months.

That was exactly the news the markets wanted to hear. Tim Seymour said on CNBC's "Fast Money" TV show that the Fed is trying to save the housing market by going targeting mortgages and interest rates.

Joe Terranova was impressed with Fed Chairman Ben Bernanke's action. As the lender and buyer of last resort, the Fed "is going to fight this thing as much as they possibly can," he said.

Guy Adami said the markets feel like they want to go higher, and Seymour added he got the first sign of buying in the markets.

Terranova said the financial are rising quickly with no pullbacks for investors to jump in. "The train is leaving the station," he said.

Melissa Lee, the moderator of the show, pointed out today's drop in the 10-year yield -- the largest single-day drop since October, 1987 -- will have a big impact on mortgage and credit card rates. Terranova said refinancings account for 72% of the today's mortgage applications.