On Friday, the US stock market rallied, sending the Dow Jones Industrial Average and the S&P 500 into record levels after the announcement of Bank of Japan’s surprise stimulus plan.
The recovery from the recent pullback, which drove the S&P 500 lower by around 8% early this month, was noted by some analysts as the second fastest recovery since 2010. The benchmarks closed the week and the month higher.
The announcement by BOJ seems to have encouraged investors that were looking for regions such as Asia and Europe to take more steps towards boosting the slumping growth amid the Federal Reserve closing its stimulus program.
According to San Francisco Gate, the Dow Jones Industrial Average gained 1.1% or 195.10 points to 17,390.52 while the S&P 500 gained 1.2% or 23.40 points to 2,018.05. The Nasdaq Composite Index rose 1.4% or 64.60 points to 4,630.74.
For the week, the Dow climbed 3.5% or 585.11 points and the S&P 500 climbed 2.7% or 53.47 points. The Nasdaq Composite climbed 3.3% or 147.03 points.
The BOJ’s announcement to increase its stimulus boosted global stocks. The Nikkei 225 Index soared almost 5%.
Investors did not focus on the softer-than-expected economic reports on consumer spending and labor costs.
Market Watch quoted Spotlight Ideas managing partners, Stephen Pope as having said, “The US sends 4.5% of its exports to Japans, and so any action that can: (a) ward off the threat of deflation and the crippling effect that has on consumer expenditure; (b) give a boost to the Japanese economy, which is the world’s third largest, has to be seen as a strong positive for future earnings potential.”
GoPro Inc. surged after its results topped estimates. AbbVie Inc. shares rallied after its profit and sales beat analyst outlooks. Madison Square Garden Co. shares climbed after the company’s fiscal quarter revenue beat analyst estimates. The company is considering splitting into two.
Apple Inc. shares reached an intraday record during morning trade as shares gained 34% since the beginning of the year. Starbucks Corp. dropped after its Q1 outlook failed to meet forecasts.
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