Investing.com - U.S. stocks ended Monday mixed to higher after dovish comments from European Central Bank President Mario Draghi offset news that Japan unexpectedly fell into a recession last quarter.
At the close of U.S. trading, the Dow 30 rose 0.07%, the S&P 500 index rose 0.07%, while the Nasdaq Composite index fell 0.37%.
The S&P 500 VIX index, which measures the outlook for market volatility, was up 5.11% at 13.99.
European Central Bank President Mario Draghi said earlier that policymakers will do what it takes to bolster the European economy, which offset news of Japan's recession.
Draghi said "unconventional measures" needed to ensure recovery could involve the purchases of sovereign debt, a monetary policy tool otherwise known as quantitative easing that aims to suppress long-term borrowing costs to spur recovery, with stocks rising as an intended side effect.
The ECB’s current stimulus program includes purchases of asset-backed securities and covered bonds.
Official data released earlier revealed that Japan’s gross domestic product contracted by an annualized 1.6% in the third quarter following a 7.3% drop in the preceding quarter, which puts the country in a recession.
Economists were forecasting a 2.3% growth rate.
Separately, Japanese Prime Minister Shinzo Abe was expected to postpone a planned sales tax increase due to come into effect next year after a sales tax hike in April of this year acted as a drag on growth.
The prime minister was also expected to call for snap elections which could take place as soon as next month.
The news rattled nerves by stoking fears headwinds may be building and slow the global economy and water down U.S. recovery.
Leading Dow Jones Industrial Average performers included UnitedHealth, up 1.41%, Intel, up 0.85%, and Wal-Mart Stores, up 0.74%.
The Dow Jones Industrial Average's worst performers included American Express, down 0.60%, Chevron, also down 0.49%, and DuPont, down 0.47%.
European indices, meanwhile, ended the day higher.
After the close of European trade, the Euro Stoxx 50 rose 0.81%, France's CAC 40 rose 0.56%, while Germany's DAX 30 rose 0.58%. Meanwhile, in the U.K. the FTSE 100 rose 0.26%.
On Tuesday, the U.S. is to release data on producer price inflation.