Stocks jumped in light trading Wednesday as investors awaited the Federal Reserve's interest rate announcement. Major stock market indicators rose more than 1 percent, including the Dow Jones industrial average, which gained 140 points to reverse a sharp slide Tuesday.
For months, investors have been looking for evidence that the economy is strengthening and pulling out of recession. Traders pay particular attention to the Fed's assesments of the economy. The latest is due at 2:15 Eastern when the central bank concludes a two-day meeting on interest rates.
It is widely expected that the central bank will hold the federal funds rate near zero. What investors are uncertain about it how the Fed will size up the economy — whether it sees further signs of strengthening that would justify the gains in stocks since the spring.
The market's jump wasn't typical for the hours before a Fed announcement. Traders tend to remain cautious and make only small moves.
The Dow Jones industrial average .DJI was up 119.78 points, or 1.30 percent, at 9,361.23. The Standard & Poor's 500 Index .SPX was up 11.45 points, or 1.15 percent, at 1,005.80. The Nasdaq Composite Index .IXIC was up 28.99 points, or 1.47 percent, at 1,998.72.
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