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U.S. stocks rise as market sees Fed staying loose; Dow up 0.89%

Published 09/11/2013, 04:22 PM
Updated 09/11/2013, 04:23 PM
Investing.com - U.S. stocks rose on Wednesday after investors bet that the Federal Reserve will take its time tapering stimulus measures, while a U.S. decision to delay plans to attack Syria bolstered share prices as well.

At the close of U.S. trading, the Dow Jones Industrial Average finished up 0.89%, the S&P 500 index rose 0.31%, while the Nasdaq Composite index fell 0.11%.

Stocks rose after U.S. President Barack Obama said his administration would support a Russian plan to seize Syria's chemical weapons cache in a deal that would put U.S. military strikes on hold.

Waning fears of a new military campaign in the Middle East enticed investors out of the safe-haven dollar and into higher-yielding asset classes such as stocks on Wednesday.

Stocks also shrugged off uncertainty as to whether the Federal Reserve will announce at its Sept. 17-18 policy meeting plans to begin tapering its monthly USD85 billion asset-purchasing program, which boosts stocks by driving down borrowing costs.

Lackluster economic indicators have many investors concerned the U.S. central bank may delay plans to begin scaling back asset purchases to later this year, while others feel any September start date will see very minor tapering, which would keep stock prices higher.

Apple shares plunged 5.44%, its second-worst drop of the year, amid pricing concerns stemming from new versions of the company's popular iPhone launched on Tuesday.

Leading Dow Jones Industrial Average performers included IBM, up 2.18%, Walt Disney, up 1.73%, and Alcoa, up 1.61%.

The Dow Jones Industrial Average's worst performers included JPMorgan Chase, down 0.76%, Intel, down 0.70%, and Hewlett-Packard, which ended the day unchanged.

European indices, meanwhile, finished higher.

After the close of European trade, the EURO STOXX 50 rose 0.24%, France's CAC 40 rose 0.06%, while Germany's DAX 30 finished up 0.58%. Meanwhile, in the U.K. the FTSE 100 finished up 0.07%.

On Thursday, the U.S. is to release the weekly government report on initial jobless claims as well as official data on import prices.








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