U.S. stocks ended the week at highs as markets rallied on overseas central banks’ stimulus efforts and an encouraging domestic outlook. Early on Friday, China’s central bank made its first interest rate cut in more than two years and the European Central Bank took action to stimulate the economy.
“The reason that Europe and China are doing this is not positive,” said JJ Kinahan, chief strategist at TD Ameritrade, although he noted that weakness abroad has likely made high-yielding U.S. equities and bonds more attractive. “The close today will be interesting if people want to get out of their positions (to limit risk next week).”
The Dow Jones Industrial Average closed at a record for the 28th time this year but failed to regain the intraday record it set in the morning of a more than 170-point gain, with most blue chips trading higher. Caterpillar led gains with a rise of more than 4 percent after Stifel initiated coverage with a “buy” rating and a price target of $122.