Markets jump on Fed stimulus hopes

Wall Street opened higher this afternoon as investors anticipated central bank stimulus measures would be forthcoming when the Federal Reserve's policy meeting concludes on Wednesday.

The Dow Jones climbed 0.58% to 12,816, while the S&P 500 edged up 0.14% to 1,344, and the Nasdaq Composite Index gained 0.78% to 2,895. Market participants are betting Fed chairman Ben Bernanke (pictured) will extend the central bank's "Operation Twist" programme in an effort to drive down long-term borrowing costs, strengthening investor confidence in the US economy. US investors may also have been comforted by progress in the eurozone following the Greek elections on Sunday. Attention initially turned to Spain as yields on its government debt reached critical levels, prompting As...