Dow Jones:11,284.54 (+134.72) S&P 500:1,176.80 (+17.53) Nasdaq:2,479.85 (+60.22)

WALL STREET posted its first weekly gain in more than a month as Fed chairman Ben Bernanke raised hopes for more stimulus for the economy at the US central bank’s September meeting.

Initially stocks fell after Mr Bernanke stopped short of describing detailed plans to strengthen the ailing economy.

However the market turned higher, led by technology shares, as investors concluded the Fed was leaving the door open for action even though many traders believe it has limited power to pull the economy out of a rut.

“He didn’t give the market the green light for QE3. He also didn’t give the market the red light for QE3,” said Kevin Caron, market strategist at Stifel, Nicolaus in Florham Park, New Jersey, referring to a possible third round of quantitative easing. “By implying that inflation is viewed as not a concern, it leaves the possibility for something down the road.”

The Dow Jones industrial average ended up 134.72 points, or 1.21 per cent, at 11,284.54. The Standard & Poor’s 500 Index was up 17.53 points, or 1.51 per cent, at 1,176.80. The Nasdaq Composite Index was up 60.22 points, or 2.49 per cent, at 2,479.85.

Shares of property insurers were mixed after falling earlier in the week on worries that severe damage from hurricane Irene would result in substantial claims.

Travelers Cos edged up 0.6 per cent to $48.29 after earlier hitting a two-year low. Allstate was up 0.1 per cent at $24.45, having also hit a two-year low. Insurers typically fall before severe weather events and rally later. Chubb gained 1.2 per cent to $59.38.

As Irene bore down on North Carolina, tens of thousands of people evacuated and East Coast cities, including New York, braced for the powerful storm. NYSE Euronext said the New York Stock Exchange planned to open for trading as usual next week.

Technology stocks led the advance, with Cisco Systems, Microsoft and Intel among the Dow’s top gainers. Cisco shares rose 1.6 per cent to $15.32, while Microsoft shares added 2.8 per cent to $25.25, and Intel advanced 1.8 per cent to $19.77. The S&P information technology index shot up 2.3 per cent, making it the S&P 500’s best-performing sector.

Tiffany rose 9.3 per cent to $69.01 after it raised its full-year profit outlook. – (Reuters)