U.S. stocks rally on hopes for ECB stimulus; Dow gains 0.44%
Published Aug 25, 2014 04:36PM ET
Dovish Draghi comments give Wall Street a boost
Investing.com - U.S. stocks rose on Monday after European Central Bank President Mario Draghi said late last Friday that monetary authorities stood ready to stimulate the economy to spur recovery, which drew applause on Wall Street, home to many companies with strong ties across the Atlantic.
At the close of U.S. trading, the Dow 30 rose 0.44%, the S&P 500 index rose 0.48%, while the NASDAQ Composite index rose 0.41%.
The Volatility S&P 500 index, which measures the outlook for market volatility, was up 2.01% at 11.70.
The Federal Reserve Bank of Kansas City's annual Jackson Hole symposium wrapped up leaving investors preparing for looser monetary policy in Europe.
While Fed Chair Janet Yellen left investors concluding that stimulus programs will end around October while interest rates will rise some time in 2015, her counterparts in Europe and Japan were seen sticking with more expansionary policies going forward.
On Friday, Draghi said monetary authorities stood "ready to adjust our policy stance further" and will use all necessary tools to “ensure price stability over the medium term.”
Elsewhere, the U.S. Commerce Department reported earlier Monday that U.S. new home sales dropped by 2.4% to 412,000 units last month, confounding expectations for an increase of 5.7% to 430,000.
New home sales in June were revised up to 422,000 units from a previously reported 406,000 units.
Markets shrugged off the report, as last week data revealed that U.S. existing home sales increased 2.4% to 5.15 million units last month from 5.03 million in June. Analysts had expected existing home sales to dip 0.4% to 5.02 million units in July.
Leading Dow Jones Industrial Average performers included J P Morgan Chase & Co (NYSE:JPM), up 1.48%, Goldman Sachs Group Inc (NYSE:GS), up 1.38%, and Verizon Communications Inc (NYSE:VZ), up 1.07%.
The Dow Jones Industrial Average's worst performers included Intel Corporation (NASDAQ:INTC), down 0.39%, Walt Disney Company (NYSE:DIS), down 0.10%, and Wal-Mart Stores Inc (NYSE:WMT), down 0.02%.
European indices, meanwhile, ended the day largely higher.
After the close of European trade, the DJ Euro Stoxx 50 rose 2.07%, France's CAC 40 rose 2.10%, while Germany's DAX rose 1.83%. Meanwhile, markets in the U.K. were closed on holiday.
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Written By: Investing.com
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