US stocks have rebounded from morning losses to end solidly higher boosted by new hints at stimulus from the Federal Reserve and more reports on the European Central Bank’s possible bond buying.
The Dow Jones Industrial Average on Friday was up 100.51 points (0.77 per cent) to 13,157.51 at the closing bell.
The S&P 500-stock index added 9.03 (0.64 per cent) to 1,411.11, while the tech-heavy Nasdaq lagged with only a 16.39 point gain (0.54 per cent) to 3,069.79.
“After beginning the day in negative territory following a mixed US durable goods orders report, domestic stocks have turned to the upside in afternoon action, with global stimulus hopes being resuscitated on the both sides of the pond,” said Charles Schwab & Co analysts.
They said stocks pushed into positive territory on reports that Federal Reserve chairman Ben Bernanke told a congressman in a letter this week that there is “scope for further action by the Federal Reserve to ease financial conditions and strengthen the recovery”.
Also sparking buying was a report that the European Central Bank could set yield targets to get eurozone sovereign borrowing rates under control if and when it starts buying up sovereign debt to help end the region’s debt crisis.