September 12, 2012- Stocks Strengthen as Fed Meeting Approaches

Wall Street's guarded optimism seems to be strengthening as the Fed decision day approaches. Sentiment also got a shot in the arm from the German court ruling, which approved the ESM, albeit with some conditions. The court decision has perked up risk appetite further, as has been seen in the rally witnessed by risk asset classes. With very little macroeconomic trigger to influence trading, the upward momentum could be sustained, although the overbought levels and potential re-ignition of Fed stimulus worries could render the mood lackluster. The Dow futures are adding 73 points, the S&P 500 futures are moving up 7.90 points and the Nasdaq 100 futures are gaining 20.50 points. U.S. stocks stayed afloat on Tuesday, as stimulus hopes lent support to the markets. The Dow Industrials ended up 69.07 points or 0.52 percent at 13,323 and the S&P 500 Index closed at 1,434, up 4.48 points or 0.31 percent. Meanwhile, the Nasdaq Composite Index closed 0.50 points or 0.02 percent higher at 3,105.