Federal Reserve, Stocks Up | featured news

The Federal Reserve says it may start dialing back asset purchases this summer, but Wall Street doesn't seem worried Wednesday with stocks flying Wednesday and driving the major averages to fresh nominal highs.

Stocks rose Wednesday, as investors watched Fed Chief Bernanke deliver the semi-annual "Monetary Policy Report to the Congress" before the House Financial Services Committee.

Stocks advanced on Tuesday, putting the S&P 500 on track for its fourth straight gain on increased hopes for central bank stimulus measures ahead of the Federal Reserve's policy meeting.

The Fed spoke - and financial markets rallied. The Dow Jones industrial average surged more than 429 points, its tenth highest point gain in history and the biggest since March 2009. It was just one day after the Dow had its worst point decline since 2008.

The Federal Reserve wanted to push interest rates lower and jump-start financial markets with its $600 billion economic stimulus plan. So far the Fed is getting the results it wants.

Investors are awaiting the outcome of the midterm elections and the Federal Reserve’s two-day meeting amid speculation over stimulus programs.

Stocks rallied Wednesday as investors continue to anticipate more stimulus measures from the Federal Reserve.

The stock market continued its advance of the past month after the Fed said it would keep interest rates low to revive the economy.