Interest Rate Signal Inspires Investors
Stocks advanced Wednesday after New York Federal Reserve President Timothy F. Geithner said in a speech that core inflation is "quite moderate."</br></br>Since fighting inflation is the U.S. Federal Reserve's top concern, investors interpreted Geithner's remarks as another sign that the Fed might soon end its series of short-term interest rate increases.</br></br>Geithner said that overall inflation pressures have risen but that "inflation excluding food and energy, however, has been quite moderate, in part due to very modest growth in unit labor costs."</br></br>The Dow Jones industrial average rose 31.86, or 0.29 percent, to 11,043.44. It was the average's best close since June 2001.</br></br>Broader stock indicators were higher. The Standard & Poor's 500- stock index rose 4.49, or 0.35 percent, to 1294.18, its highest finish since May 2001. The Nasdaq composite index rose 11.04, or 0.48 percent, to 2331.36, its highest close since February 2001.