Investing.com - U.S. stocks rose on Monday in a choppy session after weak factory data fueled sentiments that the Federal Reserve will keep stimulus programs in place.
Monetary stimulus tools such as the Fed's USD85 billion monthly bond-buying program push down interest rates and flood the economy with liquidity to spur recovery, a combination that sends stock prices rising as a side effect.
At the close of U.S. trading, the Dow Jones Industrial Average finished up 0.92%, the S&P 500 index ended up 0.59%, while the Nasdaq Composite index rose 0.27%.
The Institute for Supply Management said earlier its U.S. manufacturing purchasing managers’ index fell to 49.0 in May from 50.7 in April.
Analysts were expecting an unchanged reading.
On the index, a reading above 50.0 indicates industry expansion, below indicates contraction.
Federal Reserve Chairman Ben Bernanke has said monetary authorities will pay close attention to economic data when deciding plans for monetary stimulus measures.
Weak economic indicators can spark rallies in equities markets by fanning hopes the Federal Reserve will keep monetary stimulus programs in place for longer than expected.
Past rounds of easing measures, including bond-buying programs, have sent stock prices soaring in recent years.
Leading Dow Jones Industrial Average performers included Intel, up 3.95%, Merck, up 3.70%, and Coca-Cola, up 2.03%.
The Dow Jones Industrial Average's worst performers included Bank of America, down 0.81%, JPMorgan Chase, down 0.18%, and Travelers Companies, up 0.04%.
European indices, meanwhile, finished lower.
After the close of European trade, the EURO STOXX 50 fell 0.69%, France's CAC 40 fell 0.71%, while Germany's DAX 30 finished down 0.76%. Meanwhile, in the U.K. the FTSE 100 finished down 0.88%.
On Tuesday, the U.S. will unveil data on the trade balance, the difference in value between imports and exports.
Monetary stimulus tools such as the Fed's USD85 billion monthly bond-buying program push down interest rates and flood the economy with liquidity to spur recovery, a combination that sends stock prices rising as a side effect.
At the close of U.S. trading, the Dow Jones Industrial Average finished up 0.92%, the S&P 500 index ended up 0.59%, while the Nasdaq Composite index rose 0.27%.
The Institute for Supply Management said earlier its U.S. manufacturing purchasing managers’ index fell to 49.0 in May from 50.7 in April.
Analysts were expecting an unchanged reading.
On the index, a reading above 50.0 indicates industry expansion, below indicates contraction.
Federal Reserve Chairman Ben Bernanke has said monetary authorities will pay close attention to economic data when deciding plans for monetary stimulus measures.
Weak economic indicators can spark rallies in equities markets by fanning hopes the Federal Reserve will keep monetary stimulus programs in place for longer than expected.
Past rounds of easing measures, including bond-buying programs, have sent stock prices soaring in recent years.
Leading Dow Jones Industrial Average performers included Intel, up 3.95%, Merck, up 3.70%, and Coca-Cola, up 2.03%.
The Dow Jones Industrial Average's worst performers included Bank of America, down 0.81%, JPMorgan Chase, down 0.18%, and Travelers Companies, up 0.04%.
European indices, meanwhile, finished lower.
After the close of European trade, the EURO STOXX 50 fell 0.69%, France's CAC 40 fell 0.71%, while Germany's DAX 30 finished down 0.76%. Meanwhile, in the U.K. the FTSE 100 finished down 0.88%.
On Tuesday, the U.S. will unveil data on the trade balance, the difference in value between imports and exports.