Though it flies in the face of conventional logic, the stock market was rallying straight into the eye of the hurricane known as the
The Fed is widely expected to raise rates by 50 basis points, with an announcement scheduled for around 2:15 p.m. EDT. A post-Fed relief rally was widely anticipated as the market has gone a long way toward pricing in a 50 point hike. In recent trading, the
was up 103.47, or 2.9%, at 3711.12.
TheStreet.com Internet Sector
index was up 52.41, or 6.0%, at 933.68.
Barry Berman, head stock trader with
Robert W. Baird
, said he thought the market could continue to rally in the next day or two, but sees it "running out of gas" and correcting again after that. He said there could be something negative in the Fed's statement today, or the market could focus on a negative piece of economic data that would mean the Fed will continue to raise rates agressively.
Berman said there was a lot of short-covering and a lot of momentum-buying in the market today. And while he said there was still a lot of cash on the sidelines, he did not expect it to be put to work until the market has a clearer picture of Fed intentions.
Among the day's best performers,
was up 5 5/8, or 11%, at 56 1/16 on
news that a Saudi prince had invested $50 million in the company in the past month. Also,
was up 12 11/16, or 20.5%, at 74 5/8, though it had given back some gains after trading as high as 80 1/4. The stock has rallied amid hopes that a merger with
could be announced at any time.
Business-to-business plays also were on the rise, likely on short-covering.
was up 8 1/16, or 12%, at 74 1/8, while
was up 3 15/16, or 9.4%, at 45 3/4. Also, infrastructure play
was up 6 7/8, or 9%, at 81.
Online audio stocks were among the sector's worst performers.
was down 3 3/8, or 8.9%, at 34 5/8. There was no news out on the company, and message boards seemed to indicate that institutional selling may have been behind the losses.
was down 11/16, or 5.3%, at 12 1/4, while
was off 1/8, or 4.2%, at 2 7/8.