Investing.com - U.S. stocks exploded higher Thursday, marking 2012’s largest advance, as the Federal Reserve signaled low interest rate through 2014.
At the close of U.S. trade, the Dow Jones Industrial Average added 1.41%, the S&P 500 gained 1.38%, while the Nasdaq Composite advanced 1.30%.
Sending stocks soaring higher, Fed Vice Chairman, Janet Yellen lent support to the central bank’s stance that interest rates will remain low through 2014, since the goal of full employment was missed and inflations remains steady.
Yellen stated, “I consider a highly accommodative policy stance to be appropriate in present circumstances.”
Dampening equity enthusiasm, the number of people who filed for unemployment assistance in the U.S. last week rose unexpectedly according to governmental data..
In a report, the U.S. Department of Labor stated the number of individuals filing for initial jobless benefits last week rose to a seasonally adjusted 380K, from 367K in the preceding week whose figure was revised up from 357K.
Analysts had expected initial jobless claims to fall to 355K last week.
In addition, the U.S. trade balance fell less-than-expected last month.
In more equity negative news, Italy auctioned EUR2.88 billion of the EUR3 billion of three-year bonds on offer, at an average yield of 3.89% compared to 2.76% at a similar auction last month, amid persistent concerns over the risk of sovereign debt contagion from Spain.
However, counteracting the bearish euro zone news, a senior European Central Bank official said Wednesday that the central bank still had its bond-buying program available as an option to ease pressure on Spanish bond yields.
He added that the current level of market pressure on Spain was not justified given the reforms being undertaken by its government.
Meanwhile, official data showed that industrial production in the euro zone rose unexpectedly in February, but the year-on-year fall was still the steepest since December 2009.
Eurostat said that industrial production rose to a seasonally adjusted 0.5%, from 0.2% in the preceding month, defying expectations for a 0.3% decline.
Industrial output dropped 1.8% in the year to February, in line with expectations.
Commodity shares advanced on the interest rate signal and Bank of Japan’s easing stance with U.S. Steel adding 4.9%, Cliffs Natural Resources adding 5.5% and Valero Energy climbing 5%
In bearish news, Avid Technology gave back 16% after the digital audio and video software maker stated its first quarter revenue will miss analyst’s forecasts.
In other equity news, Google's earnings beat estimates at USD10.08 per share on revenue of USD8.14 billion.
At the close of European trade, the EURO STOXX 50 gained 0.46%, France's CAC 40 climbed 0.99%, while Germany’s DAX soared 1.03%. Meanwhile, in the U.K. the FTSE 100 added 1.34%.
Traders are anticipating China’s GDP, U.S. CPI and Bernanke’s speech on Friday.
At the close of U.S. trade, the Dow Jones Industrial Average added 1.41%, the S&P 500 gained 1.38%, while the Nasdaq Composite advanced 1.30%.
Sending stocks soaring higher, Fed Vice Chairman, Janet Yellen lent support to the central bank’s stance that interest rates will remain low through 2014, since the goal of full employment was missed and inflations remains steady.
Yellen stated, “I consider a highly accommodative policy stance to be appropriate in present circumstances.”
Dampening equity enthusiasm, the number of people who filed for unemployment assistance in the U.S. last week rose unexpectedly according to governmental data..
In a report, the U.S. Department of Labor stated the number of individuals filing for initial jobless benefits last week rose to a seasonally adjusted 380K, from 367K in the preceding week whose figure was revised up from 357K.
Analysts had expected initial jobless claims to fall to 355K last week.
In addition, the U.S. trade balance fell less-than-expected last month.
In more equity negative news, Italy auctioned EUR2.88 billion of the EUR3 billion of three-year bonds on offer, at an average yield of 3.89% compared to 2.76% at a similar auction last month, amid persistent concerns over the risk of sovereign debt contagion from Spain.
However, counteracting the bearish euro zone news, a senior European Central Bank official said Wednesday that the central bank still had its bond-buying program available as an option to ease pressure on Spanish bond yields.
He added that the current level of market pressure on Spain was not justified given the reforms being undertaken by its government.
Meanwhile, official data showed that industrial production in the euro zone rose unexpectedly in February, but the year-on-year fall was still the steepest since December 2009.
Eurostat said that industrial production rose to a seasonally adjusted 0.5%, from 0.2% in the preceding month, defying expectations for a 0.3% decline.
Industrial output dropped 1.8% in the year to February, in line with expectations.
Commodity shares advanced on the interest rate signal and Bank of Japan’s easing stance with U.S. Steel adding 4.9%, Cliffs Natural Resources adding 5.5% and Valero Energy climbing 5%
In bearish news, Avid Technology gave back 16% after the digital audio and video software maker stated its first quarter revenue will miss analyst’s forecasts.
In other equity news, Google's earnings beat estimates at USD10.08 per share on revenue of USD8.14 billion.
At the close of European trade, the EURO STOXX 50 gained 0.46%, France's CAC 40 climbed 0.99%, while Germany’s DAX soared 1.03%. Meanwhile, in the U.K. the FTSE 100 added 1.34%.
Traders are anticipating China’s GDP, U.S. CPI and Bernanke’s speech on Friday.