Bernanke suggestion stirs the markets

The Standard & Poor's 500 index rose 9.05 to 1,411.13 but also snapped a six-week winning streak. The Nasdaq composite index rose 16.38 to 3,069.79, ending five straight weeks of gains.

In a typically slow August, without much else to influence trading, investors have grasped for hints about what the Fed might do.

Bernanke's letter was in response to questions from Issa, the head of the House oversight committee, who had asked whether it was premature for the central bank to consider additional stimulate steps.

Some analysts thought it strange that the market moved so decisively on just an inkling about what the Fed chairman might be thinking.

"What's new about what came out?" said Ann Miletti, senior portfolio manager at Wells Fargo Advantage Funds in Menomonee Falls, Wis. "I guess the markets are dependent on having some commentary about the macro economy every single day."

In economic news, U.S. durable goods orders, excluding the volatile transportation category, fell in July, according to the Commerce Department. Down for the fourth time in five months, durable goods are an important measure of economic health because those orders show whether businesses are willing to spend to expand or improve.