20 Jun 2012

US investors hope for expanded Fed stimulus measures

9:20 am on 20 June 2012

Wall Street closed higher on hopes that the Federal Reserve will agree to extend stimulus measures to boost the struggling economy as the euro zone debt crisis worsens.

The Federal Open Market Committee began the first day of a two-day meeting on interest-rate policy.

The meeting got under way with expectations increasing that the US central bank may extend its effort to drive down long-term borrowing costs.

On Wall Street, the Dow Jones industrial average gained 95.51 points(0.75%) to 12,837.33 at the close on Tuesday.

The Standard & Poor's 500 Index advanced 13.20 points (0.98%) to 1,357.98.

The Nasdaq Composite Index rose 34.43 points (1.19%) to close at 2,929.76.

Spain's government bond yields eased slightly after it raised €3 billion at a short-term debt sale but with its 10-year bond yield above 7%, investors worry how long the euro zone's fourth-largest economy can survive without foreign help.