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US shares up on rate, recovery expectations

Published: Thursday, Nov 12, 2009, 8:30 IST
Place: NEW YORK | Agency: PTI

Wall Street shares ended higher buoyed by expectations that interest rates will remain low and by a new wave of positive Chinese data adding to global recovery hopes.

The Dow Jones Industrial Average rose 44.29 points to 10,291.26, maintaining its positive run this week that included a Monday gain of more than 200 points.

The Nasdaq composite climbed 15.82 points (0.74%) to 2,166.90 and the broad-market Standard & Poor's 500 index added 5.50 points (0.50%) to 1,098.51.

The Dow and the S&P 500 both hit fresh intra-day highs since October last year.

Trading was lackluster amid a partial holiday marking Veterans Day.

Expectations that interest rates would remain low for some time fueled early buying of shares, traders said.

Federal Reserve officials indicated Tuesday that the central bank could keep rates at virtually zero percent for some time due to the fragile nature of the US economic recovery.

"The Federal Reserve's continued commitment to historically low interest rates appears to have sparked another rally from Wall Street bulls," said Joseph Hargett of Schaeffer's Investment Research.

Other analysts said fresh positive economic data from Beijing had injected confidence into global recovery hopes.

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