Dow Ends Day Up 108
S&P 500, Nasdaq also close higher
By Newser Editors and Wire Services
Posted Aug 29, 2016 3:16 PM CDT
Trader Kevin Lodewick, left, and specialist John Sciulli work on the floor of the New York Stock Exchange, Wednesday, July 27, 2016.   (AP Photo/Richard Drew)

(Newser) – Banks led the stock market higher Monday as investors anticipate that the Federal Reserve could raise interest rates this year from their historically low levels, the AP reports. That could help banks recover from a long slump by making lending more profitable. The Dow Jones industrial average rose 107.59 points, or 0.6%, to 18,502.99. The Standard & Poor's 500 index climbed 11.34 points, or 0.5%, to 2,180.38. The Nasdaq composite edged up 13.41 points, or 0.3%, to 5,232.33. Major US banks posted solid gains as traders bet that the Fed was likely to nudge interest rates higher in December or even at its next policy meeting in September. Federal Reserve Chair Janet Yellen told a conference last week that the case for raising rates was strengthening given improvements in the economy.