U.S. stocks opened modestly higher Thursday morning as market bulls appeared emboldened by easy-money policies enacted by the European Central and hope that it could influence the Fed. The European Central Bank cut its deposit rate from negative 0.4% to negative 0.5%, while announcing it would begin open-ended purchasing of long-term government bonds at a pace of €20 billion a month in an effort to further reduce long-term interest rates, in a bid to boost the sluggish eurozone economy. The central bank said rates would remain at "present or lower levels" until the inflation outlook "robustly" converges with its target of just below 2%. The Dow Jones Industrial Average /zigman2/quotes/210598065/realtime DJIA +2.21% rose 66 points, or 0.3%, at 27,207, while the S&P 500 index /zigman2/quotes/210599714/realtime SPX +1.48% advanced 0.4% to 3,011 and the Nasdaq Composite Index /zigman2/quotes/210598365/realtime COMP +0.77% rose 0.6% to 8,217. All three benchmarks stand within shouting distance of all-time records as investors bet that the ECB's move will influence the Federal Reserve, which gathers next week to decide on domestic monetary policy. Stocks had been headed higher before the ECB moves, after President Donald Trump said tariff hikes-from 25% to 30%-that were scheduled to take effect Oct. 1 will now go into effect Oct. 15. The president attributed the "gesture of goodwill", as he described it via Twitter, to the People's Republic's 70th anniversary commencing on Oct. 1. and came at the request of China's chief trade negotiator Vice Premier Liu He.
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Dow logs 7th gain in a row on renewed trade optimism, ECB stimulus