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Tuesday 18 August 1998 23:02 BST

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STOCKS extended their rebound as Wall Street hoped that the President Clinton sex scandal was now finally over. Investors also welcomed the Federal Reserve's decision to keep interest rates unchanged.

The Dow Jones was up 139.80 points, or 1.6 per cent, at 8,714.65 after gaining 150 points on Monday. Advancing issues beat decliners 20:9 on 687 million shares volume. Nasdaq was up 37.06 points, or 2 per cent, at 1,855.10.

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