Bloomberg: US Stocks Climbed And DJI Added 1.7 Percent
According to Bloomberg, U.S. stocks climbed, sending the Standard & Poor’s 500 Index to the highest level since May, after American service industries expanded more than forecast and speculation grew that the Federal Reserve will join Japan’s efforts to stoke economic growth.
Boeing Co., Bank of America Corp. and DuPont Co. rose more than 3 percent, leading gains in the Dow Jones Industrial Average following the Institute for Supply Management’s report and the Bank of Japan’s announcement that it will cut rates and buy bonds.
Banks rallied as JPMorgan Chase & Co. said they will likely beat third-quarter profit estimates. Chevron Corp. rose 2.6 percent after the oil company said it will buy back stock.
The S&P 500 rallied 2.1 percent, the most since Sept. 24, to 1,160.75 at 4 p.m. in New York. The index must gain 0.4 percent to reach its level on May 5, the day before the 20- minute crash that briefly erased $862 billion from the value of U.S. shares. The Dow advanced 193.45 points, or 1.8 percent, to 10,944.72. Both measures reached the highest levels since May.
Dow Jones Industrial Averages and stock markets surged Tuesday on Wall Street after the Bank of Japan trimmed its lending rate and a report showed non-manufacturing business activity rising.
The central bank in Japan lowered its bank-to-bank lending rate from 0.1 percent to zero to 0.1 percent, sending markets higher in Japan, China and Europe. Meanwhile, from Tempe, Ariz., the Institute of Supply Management said the Purchasing Managers Index for service-oriented businesses rose to 53.2 in September from 51.5 in August. Numbers above 50 in the index indicates growth.
In early afternoon trading in New York, the Dow Jones industrial average added 183.04 points or 1.7 percent to 10,934.31. The Standard & Poor’s 500 index rose 22.39 or 1.97 percent to 1,159.42. The Nasdaq composite index of tech-dominated stock gained 51.16 or 2.18 percent to 2,395.68.11