Stocks Rally, Pushing Dow To New Record

New York (AP) -- Stock prices closed higher on Wall Street.

The Dow Jones Industrial Average rose 54 points to 13,363. Gainers on the New York Stock Exchange outnumbered losers by a 5-3 margin.

The NASDAQ Composite Index gained 4.5 points at 2,576.

And the Standard & Poor's 500 Stock Index was up 5 points at 1,512.

Trading volume on the New York Stock Exchange totaled 2.8 billion shares. Volume on the NASDAQ market came to 2 billion shares.

The Dow Jones Industrials rose to another record high after investors got what they expected from the Federal Reserve; inflation is still "somewhat elevated" but economic growth is slowing for a desired "soft landing", so the central bank is holding interest rates steady.

Though some investors were hoping that the Fed would raise the possibility of a rate cut in the future, given recent economic data, they didn't seem surprised by the policy makers' stance. And they were relieved to hear the fed is not more inclined than it has been to raise rates, which would make access to capital more expensive and potentially hurt the stock market.

Copyright 2007 by the Associated Press. All rights reserved.

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