Stocks rose Tuesday as investors shrugged off worries about what the Federal Reserve is up to.

Many expect the Fed to reduce its $85 billion monthly bond-buying program after a two-day meeting that began Tuesday. Wall Street is hoping for a small reduction, because the bond-buying has had the effect of keeping interest rates ultralow and making it cheaper to borrow money.

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At the close on Wall Street, the Dow Jones industrial average was up 34.95 points at 15,529.73. The Standard & Poor's 500 index rose 0.42 percent to 1,704.76, five points below its Aug. 2 record high. 2. The Nasdaq composite was up 0.75 percent at 3,745.70.

Microsoft rose after announcing a 22 percent dividend increase and a $40 billion stock buyback program. Microsoft was up 13 cents to close at $32.93.

Outerwall, which owns the Redbox DVD kiosks, plunged $6.48 to close down at $49.49 after slashing its outlook because of weaker-than-expected demand for discs.

Also Tuesday, the Labor Department reported that U.S. consumer prices barely rose last month, the latest sign that slow economic growth is keeping inflation tame. -- AP