Stock prices soared to a five-month high on Tuesday, boosted by positive growth in the service industry and Japan’s move to lower interest rates, economic reports said.
The blue-chip Dow Jones Industrial Average rose 193.45 points to close at 10,944.72, while the S&P 500 soared 23.72 points to close at 1,160.75—a rise of more than 2 percent.
NASDAQ stocks jumped the most, up 2.36 percent (55.31 points) to 2,399.83.
Analysts credited the growth in the service sector and Japan’s rate cut with the boom, which left stocks at or near their highest level in nearly half a year.
The Bank of Japan cut interest rates overnight on Tuesday, which prompted experts to believe that a similar move by the Federal Reserve will be imminent.
An index of the service industry—which includes restaurants, hospitals, banks, and airlines—grew by almost 2 points, the Institute for Supply Management said in reference to Tuesday’s big day for stocks.
Service jobs account for more than 80 percent of all jobs in the United States, so bankers saw the latest news as an auspicious prediction of the economy’s direction.
The blue-chip Dow Jones Industrial Average rose 193.45 points to close at 10,944.72, while the S&P 500 soared 23.72 points to close at 1,160.75—a rise of more than 2 percent.
NASDAQ stocks jumped the most, up 2.36 percent (55.31 points) to 2,399.83.
Analysts credited the growth in the service sector and Japan’s rate cut with the boom, which left stocks at or near their highest level in nearly half a year.
The Bank of Japan cut interest rates overnight on Tuesday, which prompted experts to believe that a similar move by the Federal Reserve will be imminent.
An index of the service industry—which includes restaurants, hospitals, banks, and airlines—grew by almost 2 points, the Institute for Supply Management said in reference to Tuesday’s big day for stocks.
Service jobs account for more than 80 percent of all jobs in the United States, so bankers saw the latest news as an auspicious prediction of the economy’s direction.
