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US Stocks Rise in Extended Rally       10/04 09:44

   Stocks rose sharply in morning trading on Wall Street Tuesday and clawed 
back more of the ground they lost in a miserable several weeks.

   NEW YORK (AP) -- Stocks rose sharply in morning trading on Wall Street 
Tuesday and clawed back more of the ground they lost in a miserable several 
weeks.

   The S&P 500 rose 2.8% as of 10:15 a.m. Eastern. The benchmark index has been 
rallying since hitting its lowest point of the year on Friday to close out a 
September slump.

   The Dow Jones Industrial Average rose 744 points, or 2.5%, to 30,236 and the 
Nasdaq rose 3.3%. Small company stocks also made solid gains. The Russell 2000 
rose 3.3%.

   The broad gains come as investors look for signs that central banks might 
ease up on their aggressive rate hikes aimed at taming the hottest inflation in 
four decades. Australia's central bank made an interest rate hike that was 
smaller than previous ones.

   European and Asian markets also made solid gains. Australia's market jumped 
3.8%.

   Treasury yields continued to pull back from their multiyear highs, which has 
helped relieve some of the pressure on stocks. The yield on the 10-year 
Treasury, which helps set rates for mortgages and many other kinds of loans, 
fell to 3.59% from 3.65% late Monday. It got as high as 4% last week after 
starting the year at just 1.51%.

   Central banks are being closely watched as they raise interest rates to make 
borrowing more difficult and slow economic growth to try to tame inflation. 
Investors are hoping that they will eventually ease off their aggressive rate 
hikes and the move by Australia's central bank is a hopeful sign for some.

   Wall Street is worried that the rate hikes, especially the increases from 
the Federal Reserve, could go too far in slowing growth and send economies into 
a recession. The Fed has already pushed its key overnight interest rate to a 
range of 3% to 3.25%, up from virtually zero as recently as March.

   Economic growth is already slowing globally and the U.S. economy contracted 
during the first two quarters of the year, which is considered an informal 
signal of a recession. The economy still has several strong pockets, including 
employment. Wall Street will get a more detailed look at the employment 
situation in the U.S. when the government releases its monthly jobs report for 
September on Friday.

 
 
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