U.S. Stocks Erase Losses as Financial, Industrial Shares Recover
U.S. stocks rose, erasing declines, as a rebound in financial and industrial shares helped the market recover from an early slump amid optimism the Federal Reserve will step in with additional stimulus measures.
The Standard & Poor’s 500 Index gained 0.2 percent to 1,405.38, reversing an earlier decline of as much as 0.5 percent sparked by disappointing economic data from China.
“The weaker the data the higher the likelihood of stimulus from central banks,” said Alan Gayle, a senior strategist at RidgeWorth Capital Management in Richmond, Virginia, which oversees about $47 billion. “The weakness in China is likely to prompt a move there. What happens in the rest of the world can affect the U.S. Global growth is weak and getting weaker. While the Fed has been clear it will do anything to support growth, some people tend to think it’s inevitable.”