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The Dow logged a solid 130-plus gain Monday after Fed Chairman Bernanke signaled plans to leave rates low for a while but ended off its highs after banking analyst Meredith Whitney said the recent market rally is not rooted in fundamentals and the U.S. economy is likely to fall back into a recession next year.
Still, all three major indexes closed at new highs for the year as a weak dollar boosted commodity stocks and a government report showed retail sales rose in October.
The Dow Jones Industrial Average rose 136.49, or 1.3 percent, to close at 10,406.96. The S&P 500 gained 1.5 percent, closing above the key 1,1100 level for the first time since Oct. 2008, and the Nasdaq advanced 1.4 percent.
Earlier, Federal Reserve Chairman Ben Bernanke made a rare comment on the dollar — a subject he usually leaves to the Treasury Secretary. Essentially, he said the Fed is watching the dollar but will still likely leave rates low for some time.
"We are attentive to implications of changes in the value of the dollar and will continue to formulate policy to guard against risks to our dual mandate to foster both maximum employment and price stability," he told the Economic Club of New York.
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