Stocks climb after Feds hold down interest rates
NEW YORK (AP) — The stock market continued its steady advance of the past month after the Federal Reserve said it would keep interest rates low to revive the economy.
The Dow Jones industrial average rose 75 points in afternoon trading today for its seventh straight advance. The gain means the Dow has joined the Standard & Poor's 500 index and Nasdaq composite index in reaching levels not seen since 2008.
The latest climb came from the Fed's decision Tuesay to hold its key lending rate at a record low of essentially zero. A government report that prices at the wholesale level fell by the biggest amount in seven months added to confidence that inflation is contained. That would enable policymakers to keep rates low.
The Labor Department's Producer Price Index fell 0.6 percent in February, its steepest drop in seven months. Economists polled by Thomson Reuters forecast a drop of 0.2 percent. A drop in energy prices helped push the index lower.