Industrials Climb Despite Uncertainty Over the Fed Move
AFTER TWO down months, stocks surprised investors with a rebound -- just as the Federal Reserve meets today to take what is expected to be a first step toward higher interest rates.</br></br>Despite uncertainty about how soon and how much the Fed will raise rates, the Dow Jones Industrial Average rose 88.43 points, or 0.86%, to 10314.00, still down 1.3% since the year began.</br></br>Whether this proves to be a one-day bounce or a more lasting rebound depends heavily on whether the Fed damps investors' enthusiasm by signaling a sooner-rather-than-later rate increase.</br></br>Investors widely expect Fed policy makers to leave their target overnight lending rate at 1%, a 46-year low, for now. Low Fed targets have helped keep most market interest rates down, helping stocks and bonds for more than 18 months.</br></br>Many expect the Fed today will end its promise to be "patient" about raising rates. Whether stocks and bonds rise or fall probably depends on whether the Fed signals plans to raise rates at its next meeting, in June, or instead to wait until its August meeting.