By Aleksandra Michalska
NEW YORK (Reuters) - Stocks gained on Wednesday after a top German court gave a green light for the country to ratify Europe's new bailout fund and before a Federal Reserve decision on Thursday about injecting more stimulus into the economy.
Stocks bounced in the early going after the German Constitutional Court gave a green light for the new euro zone rescue fund to go ahead, which will allow the European Central Bank to buy sovereign bonds in an effort to lower interest rates and boost economic growth.
But investors quickly shifted attention to the Fed, which began a two-day policy meeting on Wednesday and is expected to announce on Thursday whether it will introduce more monetary easing.
"We are chipping away all these negative concerns of investors," said Craig W. Johnson, market strategist at Piper Jaffray. "The market is going to continue to move higher."
The S&P 500 index has advanced more than 9 percent since the start of June on hopes for global central bank stimulus. But the index has been unable to significantly pierce the 1,438-1,440 level, seen as a significant resistance point.
Apple Inc
The Dow Jones industrial average <.DJI> was up 26.14 points, or 0.20 percent, at 13,349.50. The Standard & Poor's 500 Index <.SPX> was up 4.15 points, or 0.29 percent, at 1,437.71. The Nasdaq Composite Index <.IXIC> was up 10.16 points, or 0.33 percent, at 3,114.69.
Facebook Inc
Ford Motor's
Chesapeake Energy
Mediware Information Systems Inc
(Editing by Dave Zimmerman)