Stocks are on the sky again

Stocks Rally Ahead of Fed

By STEVEN RUSSOLILLO

NEW YORK—U.S. stocks rose Tuesday morning in what is expected to be another volatile session as investors awaited the Federal Reserve's policy statement and any hint that the central bank will be able to calm markets and boost the economy.

The Dow Jones Industrial Average was recently up 228 points, or 2.1%, at 11037. The index briefly turned negative shortly after the opening bell, but has rallied since.

Bank of America led the measure higher, rising 4.8% after tumbling 20% in Monday's rout. J.P. Morgan Chase gained 4%. The Dow fell 635 points on Monday, the sixth-biggest point drop in its history, to close at a 10-month low.

The blue-chip index fell beneath 11000 for the first time since November in the wake of Standard & Poor's downgrade of the U.S. government's credit rating. Jittery investors have fretted over government debt and the possibility that the economy could slide into another recession.

The Standard & Poor's 500-stock index climbed 26 points, or 2.3%, to 1145, led higher by financial and material stocks. Financial stocks were hit the hardest in Monday's drubbing. The technology-oriented Nasdaq Composite gained 61 points, or 2.6%, to 2418.