Stocks moved higher yesterday as US investors, regaining their optimism about interest rates, decided the Federal Reserve would implement only a small increase when it meets this week.

At the close on Wall Street, the Dow Jones industrial average was up 102.59 points, or by 1 per cent, at 10,655.15. Broader stock indicators were also higher.

The Standard and Poor's 500 index was up 14.58 at 1,329.89, and the Nasdaq composite index was up 31.72 at 2,584.37, boosted by a late recovery in some Internet stocks.

Advancing issues outnumbered decliners by a 12-to-7 margin on the New York Stock Exchange, with 1,862 up, 1,080 down and 573 unchanged.

NYSE volume totalled 641.14 million shares as of 4 p.m., against 609.76 million in the previous session.