Stocks Rally; Nasdaq at High By Megan Davies NEW YORK (Reuters) - U.S. stocks gained on Tuesday, after the Federal Reserve raised interest rates as expected, while it reassured investors that inflation was in check and indicated the economy was growing at a moderate pace. Meanwhile, technology stocks climbed after a report that Veritas Software Corp. (VRTS.O: Quote , Profile , Research ) would be taken over. The S&P 500 closed above 1,200 for the first time in more than three years, rising to its highest since early August 2001, while the Dow was at its highest since March and the Nasdaq closed at a new high for the year -- its loftiest level since June 2001. The Dow Jones industrial average rose 38.13 points, or 0.36 percent, to close at 10,676.45, based on the latest data. The Standard & Poor's 500 Index advanced 4.70 points, or 0.39 percent, to end at 1,203.38. The Nasdaq Composite Index climbed 11.34 points, or 0.53 percent, to finish at 2,159.84. Stocks strengthened after the Fed, led by Chairman Alan Greenspan, said inflation expectations remained "well contained" and output was growing "moderately" despite the earlier rise in energy prices. "Greenspan was saying that the economy is moving along strongly enough that rate hikes won't slow it too much -- I think that encouraged the market to move higher," said Brian Williamson, vice president, equity trading, The Boston Co. Asset Management. The benchmark fed funds rate was raised by a quarter percentage point to 2.25 percent. The more symbolic discount rate also was increased by a quarter point to 3.25 percent. Trading was active, with 1.5 billion shares changing hands on the New York Stock Exchange, above the 1.4 billion daily average for last year. About 2.25 billion shares were traded on Nasdaq, above the 1.69 billion daily average last year. Advancers outnumbered decliners on the NYSE by a ratio of about 5 to 3, and by about 3 to 2 on Nasdaq. Market watchers broadly welcomed the Fed's announcement. "The Fed statement is virtually identical to the one issued in November," said Bill Strazzullo, chief trading strategist at State Street Corp in Boston.     Continued ... Quelle "Stocks Rally; Nasdaq at High" : reuters.com Main page for "Stocks Rally; Nasdaq at High"