Stocks higher on Fed policy note

Signs that the Federal Reserve would keep interest rates low for several more months pushed stocks broadly higher Thursday, adding to the market's multi-day rally.

The Dow Jones industrial average rose 138.46 points, or 0.8 percent, to close at 17,050.75. The Nasdaq composite rose 19.64 points, or 0.4 percent, to 4,810.79. The Standard & Poor's 500 index rose 17.60 points, or 0.9 percent, to 2,013.43.

The S&P 500 has risen seven out of the last eight sessions and is now above 2,000 for the first time since mid-August.

Stocks spent most of the morning little changed, but moved steadily higher after investors had a chance to work through the minutes from the Fed September policy meeting.

In the minutes, Fed officials expressed confidence that the U.S. economy was improving, citing the job market. But policymakers had concerns that inflation continues to remain abnormally low, noting the recent drop in commodity prices, a major reason why the Fed did not raise interest rates.

The Fed has kept rates near zero for nearly seven years. It has repeatedly signaled it wants to raise rates, but has held off on doing so.

"The Federal Reserve is waiting for the ideal time to raise rates. But, for those who live in the real world, we know that there is not a 'perfect' time," said David Libovitz, global market strategist at JPMorgan Funds.

Scott Clemons, chief investment strategist for Brown Brothers Harriman's wealth-management business, said investors no longer expect rates to go up this year, even though Fed Chair Janet Yellen has said that's likely to happen.

"The market has begun to conclude that they're the boy who cried wolf" where raising interest rates is concerned, Clemons said.

The price of oil rose Thursday as the dollar weakened, making oil more attractive to overseas buyers, and on concerns that Russia's military actions in Syria raised the threat of a wider regional conflict.

Energy stocks were among the biggest gainers Thursday, following oil. Marathon Oil rose 5 percent, Occidental Petroleum was up 3 percent, and Hess added 4 percent.

Benchmark U.S. oil rose $1.62, or 3.4 percent, to $49.43 a barrel in New York. Brent crude, which is used to price international oils, gained $1.72, or 3.4 percent, to $53.05 a barrel in London.

In other fuel-futures trading, wholesale gasoline rose 1.8 cents to $1.408 a gallon, heating oil rose 2.2 cents to $1.602 a gallon, and natural gas rose 2.4 cents to $2.498 per 1,000 cubic feet.

In metals trading, gold lost $4.40 to $1,144.30 an ounce, silver fell 33 cents to $15.77 an ounce, and copper fell 2 cents to $2.34 a pound.