(Updates to 4 p.m. close)
NEW YORK, March 18 (Reuters) - Stocks rose on Tuesday, with the Dow gaining for a fifth straight day as a carry-through rally on hopes war in Iraq will be quick was held back by worries over a weak economy.
The U.S. Federal Reserve held interest rates steady and in an unusual move, jettisoned its so-called balance of risks assessment, saying it could not "usefully characterize" the economy given the uncertainties that abound.
"The fact that the Fed did not change the bias is somewhat positive. But I think the market is having a reality check," said Peter Cardillo, chief strategist at Global Partners Securities Inc. "We have come up sharply on the pretense that we will have a short war but we are not engaged in war just yet. Once the bombs start to fall the progress of the war will be noted."
The blue-chip Dow Jones industrial average gained 52.31 points, or 0.64 percent, to 8,194.23, according to the latest figures. The broad Standard and Poor's 500 index , rose 3.66 points, or 0.42 percent, to 866.45. The tech-laced Nasdaq Composite Index added 8.26 points, or 0.59 percent, to 1,400.53.
Tobacco stocks were slammed after renewed talk of the case brought by the U.S. Justice Department against the tobacco industry which demands the biggest U.S. cigarette makers be ordered to forfeit $289 billion in profits. Altria Group Inc., a Dow component, sank 6.1 percent and R.J. Reynolds Tobacco Holdings Inc. sank 8.5 percent.