WALL Street hopes for more Fed action and clear signs European leaders will follow through on their new urgency to tackle the Eurozone debt crisis if US stocks are to build on their best week since early July.

Investors expect the Federal Reserve to take steps to pull down long-term interest rates when policymakers meet tomorrow and on Wednesday to help revive the persistently weak US economy.

But even with expectations of more intervention to boost the economy, investors will keep a close eye on developments in Europe.

The Standard & Poor’s 500 index posted a 5.4 per cent gain last week, its best since early July. The Nasdaq composite index gained 6.3 per cent for the week while the Dow Jones rose 4.7 per cent.

Any lack of progress or backsliding on efforts to get the currency bloc’s fiscal house in order will renew worries the crisis could seriously damage the world financial system and major economies.

“The Fed is really going to dominate next week,” said Paul Mendelsohn of Windham Financial Services.