NEW YORK REPORT
US stocks rose yesterday, as investors bet the US Federal Reserve will stick to its accommodative policy to foster economic recovery, boosting growth-sensitive sectors such as financials, technology and industrials.
The gains were broad-based, with all but three of the 10 S&P 500 industry sectors ending higher. Energy and other natural resources stocks were underpinned by resurgent global commodity prices as the US dollar retreated.
The Federal Reserve began a two-day policy-setting meeting yesterday. Its policy statement is due today around 2:15 pm.
With no change expected in interest rates, investors probably will focus on the bank’s assessment of the economic outlook, particularly after Chairman Ben Bernanke said last week that the recession was “technically” over.
The Dow Jones industrial average gained 51.01 points, or 0.52 per cent, to end at 9,829.87. The Standard & Poor’s 500 Index rose 7.00 points, or 0.66 per cent, to 1,071.66 – a fresh 11 month closing high. The Nasdaq Composite Index climbed 8.26 points, or 0.39 per cent, to 2,146.30.
The S&P 500 has risen 58.4 per cent since hitting a 12-year closing low on 9 March.
Among financials, Citigroup shares jumped 5 per cent to $4.65 following news that Singapore wealth fund GIC has cut its stake in the US banking company in half.
Bank of America rose 2.1 per cent to $17.61 after Rochdale Securities analyst Richard Bove raised his price target on the stock.