Dow skyrockets as FOMC meeting begins

As we approach the potentially massive impact of the Fed’s decision tomorrow, confidence appears to be returning to the market, with stocks on Wall Street surging to highs in late trading.

There’s no doubt that the market's focus will be on the outcome of the Fed meeting tomorrow, but in the meantime, US economic data has been bubbling along quite nicely, with signs of growth but without the concern of excessive inflation.

For me, the trifecta of modest growth, historically high unemployment and low inflation does not add up to the Fed reducing its current rate of stimulus, but just as important as the decision may be the tone in Bernanke's press conference and how he massages expectations for the future.

The Dow Jones was up 145 points, close to 1%, to 15,325 in the last hour of trading on Wall Street, while the S&P 500 and NASDAQ 100 made similar percentage gains.

Adobe Systems reports earnings after the market closes tonight. Earnings of $0.21 per share are expected for its fiscal second quarter.

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