U.S. shares advanced, following a two-day selloff, as investors took an optimistic view on domestic growth amid reassuring comments from Federal Reserve policy makers.
The Standard & Poor’s 500 Index added 0.5 percent to 1,967.15 at 4 p.m. in New York, after briefly erasing a 1.1 percent gain. The gauge fell a combined 1.9 percent over Thursday and Friday.
Just days after the central bank voted to hold interest rates near zero, sparking the biggest post-meeting selloff since July 2014, four Fed officials separately said the U.S. economy is strong enough to withstand a hike this year. Their remarks suggested continued improvement in the domestic economy may overshadow concerns about global conditions.
The quartet of policy makers who spoke out contended that any threat from abroad is temporary, providing an antidote to Chair Janet Yellen’s warning last week that global financial-market turmoil could harm growth.
After the Fed left rates unchanged, the S&P 500 erased its weekly gain, with financial companies tumbling. The late-week slump put the finish another period of indecision as the equity gauge capped its 10th straight week of back-and-forth results with a decline of 0.2 percent.
Source : Bloomberg