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 NEW YORK (AP) - The Federal Reserve's stance on interest rates helped spark a comeback on Wall Street last week, and investors are hoping that this week's data on new home sales, gross domestic product and personal spending will add momentum to the rally.
The market is still showing signs of volatility, but investors are tentatively optimistic about its recovery after the Dow Jones industrials posted their best weekly point gain in four years and returned to positive territory for the year. The blue chip index jumped 159 points Wednesday after a Fed statement appeared to raise the possibility of a rate cut this year, a move the market hopes would encourage consumer spending.
But because worries continue to plague the market over subprime lenders' troubles and the slow housing market, investors will closely read the Commerce Department's report Monday on February new home sales. Analysts expect a rise to 995,000 from 937,000 in January. On Friday, the National Association of Realtors reported a 3.9 percent surge in February existing home sales.
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