NEW YORK -- Stocks closed sharply higher today after the Federal Reserve raised rates for the third time this year and indicated that the latest increase may be all that's needed for now to slow the nation's rapid economic growth.
Dow soars 172;
Nasdaq up 73
In a volatile session on Wall Street, the Dow Jones industrial average gained 171.58, or 1.6 percent, to close at 10,932.33, its highest close since Sept. 13, when the index closed at 11,030.33. The Standard & Poor's 500 gained 25.64 to 1,420.03 and the Nasdaq composite rose 73.51 to 3,293.05, closing records for both indexes.
Advancers beat decliners by a 3-to-2 margin on the New York Stock Exchange, with 1,665 up, 1,312 down and 540 unchanged. NYSE volume totaled 903.5 million shares vs. 793 million yesterday.
The NYSE composite index gained 10.31 to 647.62 and the Russell 2000 index of smaller companies rose 3.91 to 456.88. But the American Stock Exchange composite index slipped 3.65 to 827.01.
The Fed's decision sent the Dow rising from a gain of about 90 points in early afternoon to a gain of 133 points immediately following the announcement. Within moments, however, the Dow plunged into negative territory. Traders said the dramatic swing was prompted in part by computer-
driven program trading, and in part by investors who hoped to capitalize on the fierce initial rally.
Bond prices, which are sensitive to inflation and interest rates, fell. The yield on the benchmark 30-
year Treasury bond rose 4 basis points to 6.06 percent after dipping to 6.01 percent earlier in the day.