Dow up 93 points so far today, at 10,701.
NEW YORK (AP) — 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 Dow Jones industrial average rose nearly 100 points in midday
trading. Broader indexes also rose more than 1 percent. 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.
“The Fed will hint at it, put it on the table, but not do
anything,” said Brian Gendreau, a market strategist at Financial
Network Investment Corp.
While many economic indicators have topped forecasts in recent
weeks, propelling stocks higher, the economy is far from strong. If
the Fed starts buying bonds again it could drive interest rates
lower, enabling companies and consumers to get cheaper loans. The
Fed had a similar bond-buying program in place earlier this year.
Treasury prices were little changed Monday.
