Wednesday stocks rise as Bernanke details possible stimulus

Dow now at 12,810, up 47 points.

NEW YORK (AP) — Stocks are jumping as the Federal Reserve chairman spells out ways that the central bank might act to stimulate the economy if the threat of deflation, or falling prices, comes back.
Bernanke’s remarks were far from an actual promise for more economic stimulus, but markets reacted immediately nonetheless. The Dow Jones industrial average nearly doubled its morning gains in ten minutes, and the dollar and U.S. government bond prices fell as investors shed lower-risk assets.
The Standard & Poor’s 500 rose 15 points, or 1.1 percent, to 1,329 in midday trading Wednesday. The Dow rose 133 points, or 1.1 percent, to 12,580. The Nasdaq composite rose 39, or 1.4 percent, to 2,821.
In testimony before congress, Bernanke outlined options the Fed would consider if the economy does not improve.

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