U.S. Shares Rise After Selloff Amid Optimism on Domestic Growth

U.S. shares advanced, following a two-day selloff, as investors took an optimistic view on domestic growth amid reassuring comments from Federal Reserve policy makers.

The Standard & Poor’s 500 Index added 0.5 percent to 1,967.15 at 4 p.m. in New York, after briefly erasing a 1.1 percent gain. The gauge fell a combined 1.9 percent over Thursday and Friday.

Just days after the central bank voted to hold interest rates near zero, sparking the biggest post-meeting selloff since July 2014, four Fed officials separately said the U.S. economy is strong enough to withstand a hike this year. Their remarks suggested continued improvement in the domestic economy may overshadow concerns about global conditions.

The quartet of policy makers who spoke out contended that any threat from abroad is temporary, providing an antidote to Chair Janet Yellen’s warning last week that global financial-market turmoil could harm growth.

After the Fed left rates unchanged, the S&P 500 erased its weekly gain, with financial companies tumbling. The late-week slump put the finish another period of indecision as the equity gauge capped its 10th straight week of back-and-forth results with a decline of 0.2 percent.

Source : Bloomberg

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U.S. Stocks Rise After Selloff Amid Optimism on Domestic Growth

U.S. stocks advanced following a two-day selloff, as investors took an optimistic view on domestic growth amid comments from Federal Reserve policy makers.

The Standard & Poor’s 500 Index added 0.4 percent to 1,966.03 at 12:02 p.m. in New York, after rising as much as 1.1 percent. Equities trimmed earlier gains as drug makers fell amid remarks from Hillary Clinton on drug prices. The Nasdaq Biotechnology Index fell 3.1 percent.

Over the weekend, three Federal Reserve policy makers argued that higher borrowing costs are still warranted this year, commenting after the central bank held its fire amid global financial-market volatility and concern about the impact of an economic slowdown in China. Their remarks suggested continued improvement in the domestic economy may overshadow concerns about global conditions.

After the Fed left rates unchanged, the S&P 500 erased its weekly gain, with financial companies tumbling. The late-week slump gave the equity gauge another period of indecision, as it capped its 10th straight week of back-and-forth results with a decline of 0.2 percent. 

The central bank’s decision, and the way its deliberations were framed by Yellen in a post-meeting press conference last week, were interpreted by many Fed watchers as a sign that the central bank might not raise interest rates this year. In holding rates steady, the Fed noted international uncertainties and subdued inflation.

Source : Bloomberg

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