Wall Street stuck to the script today, ignoring the Federal Reserve's decision to boost short-term interest rates for the 10th straight time.
Stocks rose before the decision was announced, jiggled a bit right after the Fed's statement was issued and then stabilized, scoring their best gains in two weeks.
The Dow Jones industrial average climbed 79 points to 10,615,67. The Nasdaq Stock Market composite index advanced almost 10 points to 2,174.19. The Standard & Poor's 500 stock index rose eight points to 1,231.38.
Although the stock market generally suffers from higher rates, there was little reason for the market to react today because the Fed's action had been predicted by everyone in the know.
Fed Chairman Alan Greenspan and his colleagues on the Fed's Open Market Committee have boosted rates every time they have met for more than a year, and no one expected them to stop today.
A year ago banks were paying each other just 1 percent a year interest on overnight loans, a rate is set by the Fed. After today's increase of a quarter of a point, that rate is up to 3.5 percent.
The Fed's decision was announced at 2:15 p.m. and by 3 p.m. major banks had cranked up their prime lending rate in response. Now at 6.75 percent, the prime rate is the benchmark not only for business loans but also for millions of home equity lines of credit and for some floating-rate credit cards. Those rates also will be going up as a direct result of the Fed decision.
Savers will benefit as well. Interest rates on money market accounts were also around 1 percent before the Fed began boosting and now are up to more than 3 percent at banks that are competing aggressively for deposits.
Along with keeping rates climbing steadily, the Fed made no significant change in the analysis of the economy that it issues along with each rate decision. Greenspan and company said they see "robust underlying growth" in the economy and "well contained" inflation.