- Title: Banks and tech drive Wall St up over 1 percent
- Date: 24th May 2016
- Summary: NEW YORK, NEW YORK, UNITED STATES (MAY 24, 2016) (REUTERS) (SOUNDBITE) (English) BRAD FRIEDLANDER, MANAGING PARTNER, HEAD PORTFOLIO MANAGER, ANGEL OAK CAPITAL ADVISORS, SAYING: "I think you're beginning to see a wake-up call among a set of investors that have been largely complacent about the idea of implicit dovishness coming from the Fed and I think with the Fed's confidence comes market confidence as well."
- Embargoed: 8th June 2016 21:18
- Keywords: markets stocks Fed Wall Street economy
- Location: NEW YORK, NEW YORK, UNITED STATES
- City: NEW YORK, NEW YORK, UNITED STATES
- Country: USA
- Topics: Economic Events,Equities Markets
- Reuters ID: LVA0024J65X1P
- Aspect Ratio: 16:9
- Story Text:Wall Street surged over 1 percent on Tuesday (May 24) and the Nasdaq had its strongest day in three months as investors made peace with the possibility that the U.S. Federal Reserve might soon raise interest rates.
Comments from policymakers in recent days have investors expecting a rate hike potentially in June, much sooner than previously thought given sluggish economic growth.
Wall Street has benefited from historically low borrowing costs since the 2008 financial crisis and higher rates could choke further gains. But strategists on Tuesday said they were reassured by expectations the Fed would tighten borrowing costs only gradually.
"I think you're beginning to see a wake-up call among a set of investors that have been largely complacent about the idea of implicit dovishness coming from the Fed and I think with the Fed's confidence comes market confidence as well," said Brad Friedlander, managing partner and head portfolio manager at Angel Oak Capital Advisors.
Shares rose in the banking sector, which stands to gain from higher interest rates. Bank of America, Citigroup and JPMorgan all rose over 1.4 percent.
Microsoft jumped 3.12 percent and provided the biggest boost to the Nasdaq and S&P 500, while 3M Co's 1.52-percent rise lifted the Dow.
It was the strongest session since March 1 for the Nasdaq Composite and since March 11 for the S&P 500. So far in 2016, the S&P 500 is up about 2 percent and the Nasdaq is down 3 percent.
Data on Tuesday showed new U.S. single-family home sales surged to a more than eight-year high in April and prices hit a record high, offering further evidence of a pick-up in economic growth.
The Dow Jones industrial average jumped 1.22 percent to end at 17,706.05 and the S&P 500 rallied 1.37 percent to 2,076.06.
The Nasdaq Composite surged 2 percent to 4,861.06. - Copyright Holder: REUTERS
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