U.S. stocks rose, erasing earlier losses, after Federal Reserve Bank of St. Louis President James Bullard said the central bank should continue its bond buying to boost growth that is slower than expected.
The Standard & Poor’s 500 Index gained 0.5 percent to an all-time high of 1,673.96 at 2:26 p.m. in New York, after falling as much as 0.2 percent earlier. The Dow Jones Industrial Average added 87.37 points, or 0.6 percent, to 15,422.65. Trading in S&P 500 stocks was 3.1 percent below the 30-day average during this time of day.
“I view a move by the Fed toward normalizing monetary policy as ultimately a good thing,” Liz Ann Sonders, chief investment strategist at Charles Schwab Corp., said on Bloomberg Television. Her firm has $2 trillion in client assets. “It will be a taper; they’re not going to grind this to a halt all of a sudden. If the reason is that economic growth has picked up with inflation expectations still fairly benign, then that’s the best reason for the Fed to do it.”