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The dollar fell slightly against major currencies. It tumbled almost a penny against the euro, which rose to a hair under $1.30. The price of gold climbed to its highest level since February -- $1,772 an ounce, a gain of $38, or 2 percent. When the Fed buys bonds, gold often rises, both because investors fear inflation and because a weaker dollar makes gold more expensive. The trading day didn't begin well. European markets were falling and U.S. futures slid, suggesting stocks might fall when U.S. markets opened. In addition to worries about what the Fed might do, investors were rattled by turmoil in the Middle East. Protesters stormed the U.S. Embassy compound in Yemen's capital earlier in the day, and there was violence around the U.S. mission in Cairo. The U.S. ambassador to Libya was killed Tuesday. Stocks rose after the open but barely. Then the Fed released a statement about its moves shortly after 12:30 p.m., and prices began to climb steadily. Some Fed watchers homed in on a pledge to keep stimulating the economy for a "considerable" time "after" it appears to have strengthened. That is stronger language than the central bank had used before. Then Bernanke started speaking at the press conference at around 2:15, and stocks shot up. A few minutes into the conference, the Dow was up nearly 240 points. "We are looking for ongoing, sustained improvement in the labor market," Bernanke told reporters. "There's not a specific number in mind. But what we've seen in the last six months isn't it." In other news Thursday, the Labor Department reported that the number of people seeking unemployment benefits jumped last week to the highest level in two months, though the figures were skewed in part by Hurricane Isaac. The figures come after a disappointing jobs report last week. Employers added only 96,000 jobs in August, far below the average 226,000 a month added in the January-March quarter. The government also said that wholesale prices rose 1.7 percent in August, the most in three years. They were driven up by higher costs for gas and food. Removing the impact of energy and food, however, the increase in prices has been mild. Among stocks making moves, Pall Corp. rose $4.63, or 8 percent, to $62.80. The company, which makes filtration equipment, posted net income that beat Wall Street predictions. Apple climbed $13.19, or 2 percent, to $682.98. On Wednesday, the company unveiled an iPhone with a bigger screen and faster download speeds. On Wednesday, the Dow rose to a four-year high after Germany's highest court rejected calls to block the creation of Europe's rescue fund for indebted governments. The Fed action combined with the Middle East turmoil pushed crude prices up to above $98 a barrel of the first time in more than four months. Oil rose $1.30 to close at $98.31 on the New York Mercantile Exchange. There were nearly four stocks rising for every one falling. Volume was high, 4.5 billion shares.
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