NEW YORK (AP) - Investors are getting optimistic that the Federal Reserve will restart some of its economic stimulus programmes.

Stocks closed moderately higher yesterday, a sign that many investors expect the Fed to take steps to put some energy back into the recovery. The Dow Jones industrial average rose 45 points. Trading was very light as many investors stayed out of the market while they waited for the Fed's decision. Many traders have been avoiding any big investment decisions for much of the summer because they have no sense of where the economy is headed.

The Fed's assessment of the economy, and any plans to resume its stimulus measures, will be issued after its meeting today.

"The market loves stimulus. The market wants stimulus," said Joe Saluzzi, co-head of equity trading at Themis Trading LLC in Chatham, New Jersey.

The Fed will likely leave its federal funds rate near zero, but the central bank could signal plans to restart some programs such as its purchase of mortgage-backed securities or buy Treasury bonds. The central bank's programs ended earlier this year when it appeared the recovery was proceeding well.

"The Fed has a lot of tools in its tool shed," said Larry Rosenthal, president of Financial Planning Services in Manassas, Virginia. "They have to bring buyers back into the market; they have to bring consumption back into the market."

Still, Mr. Rosenthal said any moves would also have to ensure that inflation does not become a problem too quickly. The Fed could say today that it is ready to start new programs to encourage bank lending even if it does not implement them immediately.

Hewlett-Packard Co. shares managed a small gain after its CEO was forced to resign on Friday.

According to preliminary calculations, the Dow rose 45.19, or 0.4 percent, to 10,698.75. The Standard & Poor's 500 index rose 6.15, or 0.6 percent, to 1,127.79, and the Nasdaq composite index rose 17.22, or 0.8 percent, to 2,305.69.

Advancing stocks were ahead of losers by almost three to one on New York Stock Exchange, where volume came to 789 million shares.

Bond prices traded in a narrow range yesterday. The yield on the benchmark 10-year Treasury note, which moves opposite its price, rose to 2.83 percent from 2.82 percent late on Friday.

Hank Smith, chief investment officer at Haverford Investments in Radnor, Pensylvannia, said the Fed has to be careful with how it phrases its assessment of the economy and any plans to restart stimulus programs. While investors know that the economy is weaker than it was earlier this year, bad news from the Fed could lead to further problems, starting with a drop in the stock market.

"It might be a self-fulfilling prophecy," Mr. Smith said.

European markets jumped after German exports reached their highest levels since late 2008, indicating the country's economy is recovering much faster than previously thought. There were concerns this spring that mounting government debt in countries like Greece, Spain and Portugal would stagnate Europe's economy. The German exports report was the latest data from the continent that showed the pace of growth is speeding up rather than slowing down.

Germany's DAX index gained 1.5 percent, Britain's FTSE 100 rose 1.5 percent, and France's CAC-40 rose 1.7 percent. Japan's Nikkei stock average fell 0.7 percent.

Hewlett-Packard CEO Mark Hurd was forced to resign after a sexual harassment claim led to the discovery he falsified expense reports. HP shares rose eight cents to $40.70 after falling sharply in early trading.

McDonald's Corp. rose after it reported strong July sales, including its biggest jump in US sales in more than a year. The stock rose $1.18 to $72.92.