December 16, 2008

Stocks rise Tuesday morning

U.S. markets caught a tailwind Tuesday morning as investors anticipated a federal fund rate cut announcement later in the day.

In midmorning trading, while policy makers at the U.S. Federal Reserve met for the second of a two-day meeting, the Dow Jones industrial average gained 94.94 points, or 1.11 percent, to 8,659.47. The Standard & Poor's 500 rose 1.48 percent, 12.82 points, to 881.39. The Nasdaq composite index gained 24.34 points, 1.61 percent, to 1,532.68.

The benchmark 10-year U.S. Treasury bond rose 8/32 to yield 2.489 percent.

The euro rose to $1.3736, compared to Monday's $1.3708. Against the Japanese yen, the dollar fell to 89.87 yen, down from Monday's 90.74 yen.

In Tokyo, the Nikkei average fell 96.64 points to 8,568.02, down 1.12 percent.