NEW YORK - Stocks rallied sharply today for the first time in nearly two weeks as a government report of slower economic growth raised hopes that the Federal Reserve won't raise interest rates next week. Dow gains 123
Associated PressThe Dow Jones industrial average was up 123.47, or 1.2 percent, at 10,336.95, the index's second gain in eight sessions. It was also the Dow's biggest point gain since Sept. 3. The Standard & Poor's 500 rose 14.34 to 1,282.71, and the Nasdaq composite index rose 15.89 to 2,746.16.
Advancers beat decliners by an 8-to-5 margin on the New York Stock Exchange, with 1,896 up, 1,170 down and 473 unchanged. NYSE volume totaled 1.02 billion shares vs. 850.86 million yesterday.
The NYSE composite index rose 6.55 to 592.79; the American Stock Exchange index gained 8.19 to 788.23; and the Russell 2000 index of smaller companies climbed 5.79 to 427.31.
A growing sense that the Fed may leave rates unchanged next week helped bond prices rise, pushing yields lower. The 30-year U.S. Treasury bond climbed 1 2/32, or $10.63 per $1,000 face amount; its yield fell 7 basis points to 6.05 percent. Bonds rose 0.6 percent in the month and 0.3 percent for the third quarter, taking reinvested interest into account.
Stocks rose after the Commerce Department reported that the U.S. economy, weighed down by record trade deficits, saw growth slow to an annual rate of 1.6 percent during the second quarter, the lowest rate of expansion in four years. The report provided a bit of relief for investors who have driven stocks lower over the past week in anticipation of the Fed's Tuesday meeting on interest rates.