NEW YORK (AP) — Stocks jumping as Federal Reserve Chairman stories methods that the central bank can act to stimulate the economy if the threat of deflation, or falling prices, come back.
Bernankes comments were a far cry from a real promise for more economic stimulus, but markets reacted immediately anyway. The Dow Jones industrial average nearly doubled its morning gains in ten minutes and the dollar and U.S. Government bond prices fell as investors throw lower risk assets.
Standard & poor's 500 rose 15 points, or 1.1 percent, to 1,329 at midday trade Wednesday. The Dow rose 133 points, or 1.1%, to 12,580. The Nasdaq composite rose 39, or 1.4 percent, to 2,821.
In testimony presented before the Congress that the Fed Bernanke options would consider if the economy does not improve.
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