New York: US stocks soared to fresh year highs on a record jump in existing-home sales in July and Federal Reserve chief Ben Bernanke’s comments that global recovery prospects “appear good.”
The Dow Jones Industrial Average surged 155.91 points (1.67%) to finish at 9,505.96 yesterday, the fourth day in a row of gains. The blue-chip index had not finished above 9,500 since early November and has now climbed about 45% from its March low.
The tech-heavy Nasdaq composite leapt 31.68 points (1.59%) to 2,020.90, while the broad-market Standard & Poor’s 500 index advanced 18.76 points (1.86%) to 1,026.13.
“Ben Bernanke helped Wall Street rally to new highs for the year. Stocks jumped after the Fed chairman said that the economy is on the verge of recovery,” said Scott Marcouiller of Wells Fargo Advisors.
“A better-than-expected report on home sales also provided evidence the economy is improving,” he added.
After opening higher, stocks surged after the National Association of Realtors reported existing-home sales blazed a record in July, setting a four-month rally for the first time in five years.