STOCKS closed higher yesterday as Wall Street bet the Federal Reserve will hold off raising interest rates, despite news that unemployment last month fell to a 28-year low.

The Dow Jones industrial average rose 78.47 points at 9055.15, its first higher finish after three straight days of losses.

In the broad market, advancing issues beat decliners by 17 to 11 on moderate volume of 559 million shares on the New York Stock Exchange.

The Nasdaq composite index rose 29.24 points to 1864.38.

''The market is still convinced there is no way the Fed is going to move on May 19,'' commented Robert Froehlich, chief investment strategist at Scudder Kemper.

Federal Reserve officials next meet May 19 to consider interest rate policy.

The unemployment rate fell sharply to 4.3%, the lowest in 28 years. Economists had expected a 4.7% rate.