Wall Street rallied yesterday as investors hunted for bargain in the oversold markets believing that the Federal Reserve could cut interest rates.

Investors shrugged off bad economic data Tuesday. The Conference Board reported that the consumer confidence index fell to 38, down from 61.4 in September and significantly below analysts' expectations of 52. The reading was the lowest level since the index was created 41 years ago.

The central bank holds a two-day meeting from Tuesday and is expected to lower its fed funds rate by 50 basis points to 1 percent on Wednesday. Investors were encouraged that the move might help unfreeze the credit market.

The Dow Jones industrial average jumped 889.35 points, or 10.88percent, to 9,065.12. The Standard & Poor's 500 Index surged 91.59points, or 10.79 percent, to 940.51. The Nasdaq Composite Index ran up 143.57 points, or 9.53 percent, to 1,649.47. It was the second-biggest point gain ever for the Dow and the S&P.