Markets rally on declaration of recession’s end
US stock markets jumped to four-month highs Monday, propelled by news that the world’s biggest economy exited recession in June 2009.
The markets began their upward drive in late morning trade after the National Bureau of Economic Research said the US economy had ended the most sustained downturn since World War II.
The Dow Jones Industrial Average climbed 145.77 points (1.37 percent) to finish at 10,753.62, while the tech-rich Nasdaq composite index gained 40.22 points (1.74 percent) to 2,355.83.
The broader S&P 500 index rose 17.12 points (1.52 percent) to reach 1,142.71 points.
The drive came on the back of a strong multi-session rally spurred by a brighter economic outlook.
Last week Wall Street flirted with its highest levels since May, boosted by new strong data easing concerns over the recovery.
For the week, the Dow Jones Industrial Average was up 1.39 percent.
European stock markets also rallied on Monday on the eve of a key US monetary policy meeting which is expected to provide clues over the outlook for the world’s biggest economy.
Back on Wall Street, shares in American Express were up over four percent as rival Discover Financial Services reported better-than-expected profits, raising hopes for blockbuster AmEx earnings.
Shares in hardware supplier Home Depot were up 2.6 percent as strong earnings from a US homebuilder spurred hope that the housing market may have bottomed out.
The bond market rose.
The yield on the 10-year US Treasury bond was down to 2.703 percent from 2.746 percent on Friday while that on the 30-year bond eased to 3.870 percent from 3.911 percent. Bond yield and prices move in opposite directions.