NEW YORK — The Federal Reserve’s mildly upbeat take on the economy and its plans to hold interest rates low gave stocks a lift.
The Dow Jones industrial average rose almost 44 points Tuesday for its sixth straight gain. Broader indexes also posted bigger advances. Prices for Treasurys rose as the Fed said again that it expects to keep interest rates low for “an extended period.” The Fed also said in a statement following its meeting on monetary policy that businesses are spending “significantly” more on equipment and software.
The central bank said that employment is stabilizing. That’s a brighter assessment of the job market than at its last meeting in late January. Still, the Fed noted that employers remain reluctant to hire.
“That’s a major statement. That’s saying that that’s one major risk that’s going to remain for a while,” said Guy LeBas, chief fixed income strategist of Janney Montgomery Scott in Philadelphia, referring to cautious employers.
Many investors appear relieved that the Fed will hold rates low to help the economy recover. As the economy improves, the Fed will need to start raising rates to stop prices from rising too fast.
For now, though, the Fed repeated its belief that inflation is likely to remain subdued.
Stocks rose in morning trading after the Standard & Poor’s credit-rating agency signed off on Greece’s plan to slash its budget deficit. That eased concerns the country will default on debt, and that its problems might hurt the economies of other European nations. The 16 countries that share the euro agreed to help Greece with loans if necessary.
The Dow rose 43.83, or 0.4 percent, to 10,685.98. It’s up 1.3 percent in the past six days and stands at its highest level since Jan. 19.
The Standard & Poor’s 500 index rose 8.95, or 0.8 percent, to 1,159.46, its highest close since October 2008. The Nasdaq composite index rose 15.80, or 0.7 percent, to 2,378.01. The Nasdaq is at its highest level since August 2008.
