Economics
Stocks Rise on Optimism for Fed, Valuations; Crude Oil Rallies
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Global stocks rallied, snapping three days of declines after valuations reached the cheapest levels since 2009, as investors speculated the Federal Reserve will act to spur the economy. Oil jumped while the dollar fell.
The MSCI All-Country World Index added 2.3 percent at 7:17 p.m. in New York, as weaker-than-anticipated U.S. economic data increased optimism for stimulus measures. The Standard & Poor’s 500 Index jumped 3.4 percent to 1,162.35, paring gains briefly after an earthquake shook New York and Washington. Oil rallied 1.2 percent. The Dollar Index fell 0.3 percent. The yen slid against the U.S. currency after Moody’s Investors Service cut Japan’s sovereign-credit rating. Gold sank the most since May.