Stocks In Familiar Fed-Rally Mode

By John Shipman

Associated Press

The U.S. dollar is getting knocked silly this morning, while stocks are chasing the euro higher on expectations that central bankers will cut loose with more easy money.

U.S. stocks also rallied during the April FOMC meeting, and subsequent sessions, with the Dow rising about 350 points in six sessions through May 1. But in the following five sessions, the blue-chip average fell almost 350 points, on its way to an eventual 6.7% decline in May.

This time around, stocks have been rallying over the last few weeks ahead of the two-day Fed meeting, beginning today. The Dow is currently up for the eighth time in the last 11 sessions.

At last glance, the Dow jumped 111 points, or 0.9%, to 12852, led higher by Bank of America, Microsoft, Caterpillar and United Technologies. The tech-heavy Nasdaq is up 32 points, or 1.1%, at 2927. The S&P 500 rises 13 points, or 0.9%, to 1357.

Meanwhile, the ICE Dollar Index, which tracks the U.S. dollar against a basket of currencies, is down 0.7% at 81.38. It has dropped 2% this month as investors prepare for another round of stimulus from the Fed, which would hurt the value of the greenback.

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