Wall Street keeps rally legs; Dow up 0.23 percent
US stocks rose modestly, closing out a week of solid gains amid rising investor optimism that the economy is cooling enough to keep inflation contained, easing pressure on interest rates.
The Dow Jones Industrial Average added 26.09 points (0.23 percent) to 11,279.33 and the broad-market Standard and Poor's 500 index rose 1.78 points (0.14 percent) to 1,307.11 at the closing bell. Both indexes extended moved to fresh highs after closing Thursday at their best levels since May 2001.
The tech-heavy Nasdaq composite meanwhile advanced 6.93 points (0.30 percent) to a preliminary close of 2,306.49.
The modest gains capped a strong week for equities as investors cast aside fears of rising inflation and interest rates that could choke off economic and profit growth.
"The main support for the bullish stock market tone is the creeping belief that the Fed (Federal Reserve) may only raise rates one more time, or perhaps two," said Dick Green at Briefing.com.
"This optimistic view is more prevalent in the stock market than the bond market. The fed funds futures are still priced for at least two more rate hikes this year. But stock traders appear willing to bet that the Fed will not be so aggressive."
AFP
