Stocks rose significantly Monday, with the three major indexes reaching new highs for the year, as investors focused on the weak U.S. dollar and Federal Reserve (Fed) Chairman Ben Bernanke said interest rates will remain low as the economy recovers slowly. In economic news, U.S. retail sales jumped a bigger-than-expected 1.4 percent last month. Sales excluding autos rose a smaller-than-expected 0.2 percent. Bernanke, speaking in New York City, said financial conditions are significantly better than a year ago as markets around the world have stabilized. But he warned that constrained bank lending and the weak U.S. job market “likely will prevent the expansion from being as robust as we would hope.” Given the “important” challenges facing the U.S. economy, interest rates will remain “exceptionally low” for “an extended period,” the Fed chairman said. He also noted that the Fed, which is not responsible for managing currency fluctuations, is watching the decline of the U.S. dollar. The U.S. dollar has fallen to a 15-month low against rival currencies as investors take advantage of U.S. interest rates near zero percent to fund bets in more risky stock and commodities markets. Light sweet crude oil for December delivery jumped $2.55 to $78.90 a barrel on the New York Mercantile Exchange. Gold surged $22.50 to a new record high of $1,139.20 an ounce. The Dow Jones industrial average rose 136.49, or 1.3 percent, to 10,406.96, its highest level since October 2008. The broader Standard & Poor's 500 index rose 15.82, or 1.45 percent, to 1,109.30, above the psychologically-important 1,100 level. The technology-heavy Nasdaq composite index rose 29.97, or 1.4 percent, to 2,197.85. The New York Stock Exchange composite index rose 117.21 to 7,237.10. The American Stock Exchange composite index rose 14.71 to 1,835.55. And the Russell 2000 index rose 16.59 to 602.87.
