Stocks get a boost by Fed signal
U.S. equities turned in the best week since April as investors were captivated by the Federal Reserve’s script for managing the American economy, ignoring the improvisations on the Greek stage.
The Standard & Poor’s 500-stock index finished the five days up 0.8 percent, even as the index slipped in the final session. Equities were jolted higher as Fed Chair Janet Yellen signaled the central bank won’t be raising rates quickly as officials hold out for more decisive evidence of an economic rebound.
“The Fed announcement was relatively dovish and that won the day with regard to how people were positioning money for this week,” said George Hashbarger Jr., a portfolio manager at BPV Capital Management. BPV has $1.9 billion under management. “The U.S. market has become fatigued with what is going on with Greece.”
The Dow Jones industrial average rose 117.11 points, or 0.7 percent, to 18,015.95.
The U.S. Treasury will sell $24 billion in three-month bills and $24 billion in sixmonth bills Monday. They yielded 0.005 percent and 0.085 percent in when-issued trading. It will also sell four-week bills and $25 billion in 52-week bills Tuesday, along with $26 billion in two-year notes. Additional sales include $13 billion in two-year floating rate notes and $35 billion in five-year notes Wednesday, and $29 billion in seven-year notes Thursday.