U.S. markets rise on investor optimism
A specialist works on the floor of the New York Stock Exchange last week. Stocks slipped Monday, Sept 10, 2012, as troubling economic news from China and the United States outweighed optimism about more stimulus from the Federal Reserve. (Sept. 7, 2012) Credit: AP
Investors spent Tuesday preparing for two events this week: a Federal Reserve meeting and a court ruling on whether Germany can help support E.U neighbors. And if market gains are any sign, they expect both events to turn out well.
The Dow Jones industrial average rose 69.07 points to close at 13,323.36. The average of 30 large company stocks has already gained 1.8 percent to start September, a month which is usually dismal for stocks.
Bank of America led the 30 stocks in the Dow, rising 5.24 percent, or 45 cents, to $9.03.
Federal Reserve officials will gather for a two-day meeting Wednesday. Many expect the Fed will announce a new effort to revive the sluggish economy Thursday afternoon. The assumption that the Fed will announce new stimulus measures is so widespread that some worry the market could take a plunge if the Fed fails to deliver.
On the same day the Fed starts its meeting, Germany's high court is expected to rule on whether the country can participate in a European bailout fund. The court Tuesday rejected a last-minute appeal to delay the decision.
In other trading, the Standard & Poor's 500 index rose 0.31 percent to 1,433.56. The Nasdaq composite was up 0.02 percent to 3,104.53. -- AP
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