Dow Gains 84; Nasdaq Is Up 49
NEW YORK (AP) _ Stocks rose Tuesday as the Federal Reserve did what Wall Street expected and left interest rates unchanged.
At midafternoon on Wall Street, the Dow Jones industrial average was up 83.52 at 11,165.63.
Broader stock indicators were also posting modest gains. The Nasdaq composite index was up 38.85 at 3,992.00, the Standard & Poor’s 500 index was up 5.66 at 1,505.14.
Big movers among the Dow industrials included Honeywell, up $1.813 at $38.813, and J.P. Morgan, up $3.688 at $148.625. Both companies would benefit if Fed officials are finished boosting rates to fight inflation by slowing the economy.
The Fed likely decided to leave rates alone as a stream of economic data in recent weeks suggested the central bank has succeeded in slowing the economy and keeping the lid on inflation. The Fed had raised rates six times since June 1999, before leaving them unchanged at its last policymaking meeting in July.
The Fed on Tuesday said it was maintaining its close watch on inflation, however.
Advancing issues outnumbered decliners by a slender margin on the New York Stock Exchange.
Trading volume on the NYSE totaled 532.90 million shares, up from 493.65 million at the same point on Monday.
The Russell 2000 index of smaller companies was up 1.95 at 518.40.
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New York Stock Exchange: http://www.nyse.com
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