U.S. stocks rose, rebounding after the Standard & Poor’s 500 Index capped its third consecutive month of losses, amid investor optimism about central bank support.
The S&P 500 climbed 0.7 percent to 1,946.57 at 9:32 a.m. in New York, after sliding 0.8 percent on Monday. Equities erased a monthly gain yesterday as declines in banks and health-care stocks put the brakes on a two-week comeback.
The S&P 500 enters March lugging its longest stretch of monthly declines since 2011, as equities have been beset this year by worries that China’s slowing economy will hurt growth around the globe, a concern compounded by tumbling commodity prices. That’s led investors to anticipate more support from policy makers, and China’s central bank yesterday cut banks’ reserve requirements, freeing up funds to help spur lending.
A rebound in oil prices in the final two weeks of February helped the U.S. equity benchmark to recover most of its losses last month, which reached as much as 5.7 percent. While the index is still 5.6 percent above a Feb. 11 low through Monday, it was 9.3 percent off an all-time high reached last May. A measure of volatility has jumped 13 percent this year.
Source : Bloomberg