U.S. stocks rose for the third time this week as reports on leading indicators and regional manufacturing fueled optimism in the economy, overshadowing concern that interest rates may rise in the middle of next year.
The Standard & Poor’s 500 Index (SPX) gained 0.6 percent to 1,872.01 at 4 p.m. in New York. The Dow Jones Industrial Average added 108.88 points, or 0.7 percent, to 16,331.05. Both gauges erased most of yesterday’s declines. About 6.4 billion shares changed hands on U.S. exchanges, 3.2 percent less than the three-month average.
“People assessed what Yellen said yesterday during her press conference, which allowed clearer heads to prevail,” Robert Pavlik, chief market strategist at Banyan Partners LLC, which manages $4.5 billion, said in a phone interview. “There was an overreaction to the market yesterday, and you’re essentially getting it all back today. Plus you’ve seen a slight improvement in the economic news from this morning.”
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Mingze Wu
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