Stocks end higher despite Fed rate hike
NEW YORK — The stock market ended a strong week with modest gains after investors found good news in the Federal Reserve's decision to begin dismantling emergency lending measures for banks.
The Dow Jones industrial average rose for a fourth day yesterday, edging up 9 points to record its best week in more than three months.
Stocks initially fell in response to the Fed's announcement late Thursday that it is raising the rate it charges banks for emergency loans, known as the discount rate. Stocks turned higher as investors saw the Fed's move as a vote of confidence that the financial system was recovering and that banks didn't need as much support.