subject: Market Blows Thru Resistance Into Fed Meeting [print this page] The Fed meets Tuesday to discuss interest rates, and investors are hoping for a sign that the central bank might make more moves to keep rates low by buying bonds. The Dow Jones industrial average rose 146, or 1.4 percent, to close at 10,754. The Standard & Poor's 500 index rose 17, or 1.5 percent, to 1,143. The Nasdaq composite rose 40, or 1.7 percent, to 2,356. Five stocks rose for every one that fell on the New York Stock Exchange, where volume came to 955 million shares.
Stocks extended their September rally into a fourth week Monday as investors hoped for more moves by the Federal Reserve to prop up the economy. Buying accelerated after the Standard & Poor's 500 index broke through the high end of its recent trading range. Technical analysts see that as a hopeful sign for the market.
The S&P 500, the index most closely tracked by professional investors, rose to its highest level since May 18.
The Dow Jones industrial average rose 150 points in afternoon trading. Buyers were also encouraged by an announcement from a group of economists declaring that the most recent recession ended in June 2009.
There is a growing expectation that the Fed's rate-setting committee could relaunch programs to buy Treasurys and mortgage bonds in an effort to further stimulate the struggling economy. At the very least, it might hint at future plans to make such moves following its one-day meeting Tuesday.
