US stocks opened considerably higher spurred by gains by financial companies after the Federal Reserve gave approval to banks to increase their lending rates and buy back stock.
The dollar also showed signs of easing its recent surge weakening slightly against the Euro for the first time in more than nine sessions.
The S&P 500 index gained 17 points or 0.8% in morning trading top 2,057 points to complete a partial rebound from its recent bout of weakness that has seem it suffer losses in eight of the past 11 sessions.
Nine of the ten major S&P 500 sectors recorded gains with technology shares held back by a weaker than expected outlook from Intel.
The Dow Jones Industrial Average Surged 165 points or about 1% to 117800 points while the Nasdaq composite surged rose by 20 points or 0.4% to 4870 points.
If these gains hold, the Down Jones Industrial Average and the S&P 500 index will be positive for 2015.
Fox Business reports that investors attributed this rally partly to the release of a weak retail sales report earlier in the day. The weaker-than expected monthly retail sales gave investors hope that the Federal Reserve would wait longer before raising the Interest rates.
The Federal Reserve’s benchmark lending rate has been rooted close to zero since 2008 as one of the measures instituted to aid in the recovery of the economy from the monetary crisis and the recession that ensued.
“This market is living one data point to the next,” Alan Gayle, director of asset allocation at RidgeWorth Investments told the Wall Street Journal.
“Retail sales are going to be reflected in the overall health of the economy,” said Mr. Gayle. “To the extent that economic growth in the first quarter is softer than expected…that will affect the Fed’s thinking,” he added.
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