Investing.com - China's move to loosen monetary policy coupled with the European Central Bank's hints at taking similar steps to stimulate its economy sent U.S. stocks rising on Friday.
At the close of U.S. trading, the Dow 30 rose 0.51%, the S&P 500 index rose 0.52%, while the Nasdaq Composite index rose 0.24%.
The S&P 500 VIX index, which measures the outlook for market volatility, was down 5.01% at 13.58.
Stocks rose after ECB President Mario Draghi reiterated on Friday that the central bank is prepared to act rapidly if low inflation persists.
Draghi also expressed concerns over the euro zone's weak growth, pointing out he saw no improvements in the coming months.
The ECB head was speaking at the 24th European Banking Congress "Reshaping Europe," in Frankfurt, and his comments sparked expectations for fresh stimulus.
The ECB's current stimulus program includes purchases of asset-backed securities and covered bonds, though markets are keeping a close eye out for plans to announce purchases of government debt, a stimulus tool known as quantitative easing that sends stocks rising as a side effect.
Also supporting the dollar was news that China cut its benchmark one-year deposit rate by 25 basis points to 2.75% and trimmed its one-year lending rate by 40 basis points to 5.6% to spur recovery.
Still, gains were muted at times on concerns that headwinds facing European and Asian economies may slow business among U.S. companies and their peers overseas.
Leading Dow Jones Industrial Average performers included Caterpillar Inc (NYSE:CAT), up 4.27%, United Technologies Corporation (NYSE:UTX), up 1.36%, and Chevron Corporation (NYSE:CVX), up 1.08%.
The Dow Jones Industrial Average's worst performers included Microsoft Corporation (NASDAQ:MSFT), down 1.51%, Intel Corporation (NASDAQ:INTC), down 0.97%, and American Express Company (NYSE:AXP), down 0.25%.
European indices, meanwhile, ended the day higher.
After the close of European trade, the Euro Stoxx 50 rose 2.97%, France's CAC 40 rose 3.67%, while Germany's DAX 30 rose 2.62%. Meanwhile, in the U.K. the FTSE 100 rose 1.08%.