BUSINESS

Stocks rise as market hopes for more support from the Federal Reserve; home building improves

06/18/2013 04:18 EDT | Updated 08/18/2013 05:12 EDT
NEW YORK, N.Y. - The stock market is closing higher as investors anticipate that the Federal Reserve will keep programs to support the U.S. economy in place.

The Dow Jones industrial average rose 138 points, or 0.9 per cent, to 15,318 Tuesday.

The Standard & Poor's 500 rose 12 points, or 0.8 per cent, to 1,651. All 10 industry groups rose.

The Nasdaq rose 30 points, or 0.9 per cent, to 3,482.

The pace of home construction rose in May and builders applied for permits to build single-family homes at the fastest pace in five years.

Inflation was tame last month, giving the Fed leeway to keep up its stimulus. The Fed meets Tuesday and Wednesday.

Two stocks rose for every one that fell on the New York Stock Exchange. Volume was light at 3 billion shares.