NEW YORK — The stock market extended its gains to a fourth day as the Federal Reserve said the economy was stabilizing.

The Standard & Poor's 500 index, which is the basis for many mutual funds, reached an 11-month high yesterday as industrial stocks rallied. The Dow Jones industrial average rose 50 points to its second-highest close of the year.

The market stumbled briefly following the release of the Fed's report on regional economies, which also found that consumer spending would rise but only because of car purchases linked to the government's brief Cash for Clunkers program. The report also said the job market remains weak.