U.S.
stocks rallied as the Federal Reserve ended seven years of near-zero
interest rates, and assured investors that the world’s largest economy
is resilient enough to withstand future increases in borrowing costs at a
gradual pace.
Equities
extended gains following the central bank’s move, pushing the Standard
& Poor’s 500 Index’s biggest three-day rally since Oct. 5 as the
benchmark rebounded from its worst weekly drop since August. Gains were
widespread with nine of the gauge’s 10 main industries rising more than 1
percent as Fed Chair Janet Yellen expressed confidence in the economic
outlook.
The
S&P 500 jumped 1.5 percent to 2,072.98 at 4 p.m. in New York,
rising for three consecutive days for the first time since October while
erasing losses for the year. The benchmark surged above its average
prices during the past 50 and 200 days.
While
policy makers have decided the economy is ready for higher borrowing
costs, they continue to stress that progress in economic data will
dictate the ultimate course. A report today showed new-home construction
rebounded in November, led by gains in single-family dwellings. Work
began on the most stand-alone houses since January 2008, and permits for
similar projects reached an eight-year high.
A
separate gauge showed manufacturing stagnated last month, held back by
less production of durable goods such as automobiles and metals that
reflects weak global demand.
Source: Bloomberg
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