Thursday 22 February 2018

US stocks rebound on hopes of further stimulus for growth

Specialist trader Mike Pistillo gives a price at the opening bell on the floor of the New York Stock Exchange yesterday. Photo: Reuters
Specialist trader Mike Pistillo gives a price at the opening bell on the floor of the New York Stock Exchange yesterday. Photo: Reuters

US stocks rose, sending the Standard & Poor's 500 Index higher for a third day, on speculation policy makers will act to spur economic growth.



The weakest employment gain in a year, slumping stocks and the European crisis won't stop the US economy from maintaining its expansion this year and next, according to a Bloomberg News survey.

Gross domestic product will increase by 2.2pc in 2012 and by 2.4pc in 2013, the median of 70 economists surveyed from June 1 to June 5 shows. The estimates are down 0.1 percentage point from those issued last month.

"We have to bet the economy will continue to be the way it's going, which is slow growth," said John Silvia, chief economist at Wells Fargo in Charlotte, North Carolina.

Among the biggest positives is that consumer spending, which accounts for about 70pc of the economy, will hold up, the survey showed, as households make progress in repairing finances and rising bank profits help increase access to credit. The rate of economic growth will still not be enough to reduce unemployment, projected to end the year at 8pc.

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