U.S. stocks extend Fed-inspired rally
EW YORK (MarketWatch) — U.S. stocks on Friday sealed a second week of gains as the Federal Reserve’s bond-buying program fueled demand for riskier assets including the euro and commodities.
“We had a fair amount of data out right on the heels of the Fed, but probably the biggest influence today is still the after-effects of the Fed’s announcement yesterday,” said Jim Baird, chief investment strategist at Plante Moran Financial Advisors.
The dollar fell, oil prices neared $100 a barrel and Treasurys declined as the plan by Fed Chairman Ben Bernanke and his U.S. central bank colleagues spurred investor demand for riskier assets.
Stocks have been climbing for much of the recent summer, rallying around 4% in the last two weeks. “A good amount of this move was the fact that Europe has moved away from its Lehman moment,” said Bill Stone, chief investment strategist at PNC Wealth Management.
Scaling back from a 113-point climb, the Dow Jones Industrial Average (US JIA) gained 53.51 points, or 0.4%, to 13,593.37, the highest close since Dec. 10, 2007. It gained 2.2% on the week, tallying gains for eight of the past 10 weeks. http://articles.marketwatch.com/2012-09-14/ma...rio-draghi