Stocks jump on strong economic data
NEW YORK -- Stocks surged nearly 1% as investors saw fresh signs the U.S. economy was gaining steam, just days before the Federal Reserve will decide whether to continue a major stimulus program.
The Dow Jones industrial average gained 151.88 points, or 1%, to 15,907.24 shortly after the opening bell on Wall Street.
The broader Standard & Poor’s 500 index added 13.85 points, or 0.8%, to 1,789.17. The tech-focused Nasdaq composite index rose 33.74 points, or 0.8%, to 4,034.71.
Investors were enthused by a Fed report showing industrial output surging past its pre-recession peak.
Industrial production rose 1.1% in November after having edged up only 0.1% the previous month, the Fed said. The November gain was the largest since the same month a year ago, when production rose 1.3%.
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The upbeat report comes ahead of a key Fed meeting Tuesday and Wednesday. The central bank’s policymakers are expected to decide whether to begin scaling back its stimulus program known as quantitative easing.
The Fed has been buying $85 billion in bonds every month to push down interest rates as a way to ease borrowing costs and increase growth.
The program has also boosted stocks this year, as investors have flooded into riskier assets such as equities. The Dow is up more than 21% this year.
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