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Tuesday, February 24, 2015

U.S. Stocks Advance on Rate Speculation After Yellen Statement

Posted by PT KONTAK PERKASA FUTURES BALIKPAPAN On 4:41 PM No comments


U.S. stocks rose, sending benchmark gauges to records, after Federal Reserve Chair Janet Yellen indicated an increase in interest rates is unlikely before mid-year as inflation and wage growth remain too low.
The Standard & Poor™s 500 Index rose 0.3 percent to a record 2,115.52 at 4 p.m. in New York. The Dow Jones Industrial Average gained 92.67 points, or 0.5 percent, to 18,209.51, as Home Depot Inc. and JPMorgan Chase & Co. rallied. The Nasdaq Composite Index added 0.1 percent, climbing for a 10th straight day to bring it 1.6 percent away from its 2000 record.
The S&P 500 has gained 2.8 percent this year and the Dow has added 2.2 percent. The Nasdaq Composite rallied 5.1 percent in the past 10 days, the longest winning streak since July 2009. Apple Inc., which has the biggest weighting in the Nasdaq Composite, has surged 20 percent this year.
The Chicago Board Options Exchange Volatility Index lost 6.1 percent on Tuesday to 13.67, the lowest since December. The gauge, know as the VIX, is on track for its worst month ever.
Yellen said in testimony before the Senate Banking Committee inflation that wage growth remain too low even as the job market improves, and she signaled that a change in the Fed™s guidance on interest rates won™t lock it into a timetable for tightening.
Source: Bloomberg

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