Investors have stopped worrying about the Federal Reserve. At least for now.
Stocks rose on Wall Street Monday as investors judged that the economy still isn't growing fast enough for the Fed to cut back on its stimulus program.
U.S. manufacturing grew modestly in June after a pickup in new orders and stronger production, according to a private survey. The Institute for Supply Management said its factory index increased to 50.9 in June from 49 in the previous month.
"The market has maybe stepped back from the knee-jerk reaction that the Fed news provided," said Jim Russell, a regional investment director at US Bank. "The manufacturing ISM number came in strong enough -- not too hot, not too cold."
The Dow Jones gained 65.36 points to close at 14,974.96. The Standard & Poor's 500 index rose 0.54 percent to 1,614.96. The Nasdaq composite index gained 0.92 percent to 3,434.49.
Investors will also turn their focus to corporate earnings next week. Alcoa, traditionally the first company in the Dow index to report earnings, will release its second-quarter report July 8.
Trading will be curtailed this week due to the Independence Day holiday Thursday. The New York Stock Exchange will close at 1 p.m. on Wednesday and reopen on Friday.-- AP