U.S. stocks rallied as data showed faster-than-estimated economic growth, fueling speculation the economy is strong enough to withstand higher interest rates.
Visa Inc. and MasterCard Inc. (MA) added more than 8 percent each as the two largest U.S. payment networks reported results that topped estimates. Bristol-Myers Squibb Co jumped 7.7 percent after a drug improved survival rates for cancer patients. Energy shares retreated as oil resumed a selloff after U.S. production rose to the highest level since the 1980s.
The Standard & Poor’s 500 Index (SPX) rose 0.7 percent to a one-month high of 1,996.34 at 1:44 p.m. in New York after earlier losing as much as 0.4 percent. The Dow Jones Industrial Average rallied 213.05 points, or 1.3 percent, to 17,187.36. Visa is the Dow’s largest member by weighting. The Russell 2000 Index and the Nasdaq Composite Index rose at least 0.4 percent.
“The Fed is affecting the mood,” said Patrick Spencer, head of U.S. equity sales at Robert W. Baird & Co. in London. “They’re basically saying everything is on track for the best case in the economy, but maybe the first interest-rate hike will get closer, and that might worry people.”
NYSE Euronext said in an email alert that the securities information processor, the computers that dissimenate stock prices, is “experiencing issues publishing and receiving trades and quotes.”