Stocks Up Despite Anxiety Over Fed

    February 2, 2005

U.S. stocks went up as the dollar remained steady and anticipation of an interest-rate jump from the Fed built.

It is expected that the Fed’s Open Market Committee will raise short-term interest rates by another 0.25 percentage point.

“I think what we’ve got here is a market that looks like it’s on the mend,” says Philip Dow of Dain Rauscher Wessels. “To me, you can only say the surprises in the economy and in earnings have been positive this year. Of course, there are some participants who won’t do anything until they see what the Fed is going to do.”

“You’re definitely seeing some institutions out there that held back in January that would’ve been out there had the markets gone up instead,” said Bill Groenveld, head trader at vFinance Investments. “I do believe, however, that if we break this downtrend and have a solid move up, we’ll see more people getting back in.”

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