Stocks are rising at the closing of trading after the Federal Reserve said it has discussed policy moves it can make to spur the economy. The Fed also said growth has been slower than expected.
The Dow Jones industrial average is closing up 429 points, or 4 per cent, to 11,239.77.
Stocks rallied in the last hour of trading. Stocks initially fell after the Fed made its statement, which included a pledge to keep interest rates at their record low until at least the middle of 2013.
The S&P 500 is up 53, or 4.7 per cent , to 1,172.53. The Nasdaq is up 124, or 5.3 per cent, to 2,482.52
The Dow had plunged 634 points yesterday on the first day of trading since Standard & Poor's cut the US credit rating.
AP
