NEW YORK — Wall Street got back to focusing on the economy instead of the Federal Reserve on Tuesday, sending stocks higher.
NEW YORK — Wall Street got back to focusing on the economy instead of the Federal Reserve on Tuesday, sending stocks higher.
Four reports showed a brightening U.S. economy. Housing and manufacturing continued to improve, and consumer confidence hit its highest level in 5 1/2 years.
The major U.S. stock indexes closed higher. The Dow Jones industrial average shot up 100.75 points, or 0.7 percent, to 14,760.31. The Standard & Poor’s index rose 14.94 points, or 1 percent, to 1,588.03. The Nasdaq composite climbed 27 points, 0.8 percent, to 3,347.89.
The triple-digit rise in the Dow continues a bout of market volatility caused by investors and traders who are worried about the Fed ending its economic stimulus.
Last Wednesday, Fed Chairman Ben Bernanke said he expects the Fed to end its bond buying by the middle of 2014 if it feels the economy can manage without that stimulus.
The Dow then plunged by triple digits on three of the next four trading days, with investors worried that the market would struggle without the Fed propping it up.
Some investors concluded that the recent sell-offs were overblown.
“This is the day where the dust appears to be settling,” said Jonathan Lewis, chief investment officer at Samson Capital Advisors in New York.