U.S. stocks recovered Thursday from one of the worst starts to a year on record. The Standard & Poor’s 500 and Dow Jones Industrial Average ended the day above their 2016 opening-bell levels after a roller-coaster ride of volatility that had knocked 10 percent off both major indexes by mid-February.
The rally began a day earlier, spurred by the U.S. Federal Reserve’s surprise lowered projection for interest rate hikes in 2016. Low borrowing costs are good for corporate earnings, which boosts stocks. But fewer rate increases for the year indicate the central bank is still concerned the U.S. economy cannot absorb a faster pace of hikes without causing a slowdown in hiring and a risk of deflation.
After starting the trading session lower, the Dow (INDEXDJX:.DJI) ended the day up 155.73 points, or 0.9 percent, to 17,481.49. The Dow started the year at 17,405.48.
The broader Standard & Poor’s 500 index (INDEXSP:.INX) rose 13.37 points, or 0.66 percent, to 2,040.59. The S&P started the year at 2,038.20.
Asian stocks made a subdued start on Tuesday, with Japanese shares dipping on a bullish yen.
Asian stocks made a subdued start on Tuesday, with Japanese shares dipping on a bullish yen, while commodities such as crude oil stood tall thanks to a sagging dollar.
MSCI's broadest index of Asia-Pacific shares outside Japan .MIAPJ0000PUS was effectively unchanged.
Japan's Nikkei .N225 dipped 0.3 percent, while Australian shares inched down 0.1 percent. South Korea's Kospi .KS11 was flat.
Caution as the U.S. earnings season got underway was expected to cap risk assets this week. Metals company Alcoa Inc (AA.N) on Monday reported a lower quarterly profit, with results hurt by factors like low commodity prices.
Reference: International Business Times, Reuters
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