U.S. stocks rally after surprise rate cut from China
China cuts, U.S. stocks rise. The Dow Jones Industrial Average surged 150 points at the opening bell Friday after China’s central bank earlier made its first interest rate cut in more than two years. China’s economy is the world’s second largest after the U.S.
The S&P gained 16 points in the open, or 0.78 percent, at 2,068.91, with materials leading gains across all 10 sectors. The Nasdaq gained 41 points, or 0.88 percent, at 4,743.51. The People’s Bank of China cut its benchmark interest rates Friday for the first time in more than two years on Friday to lower borrowing costs and lift a cooling economy back on track. The one-year benchmark lending rate has been trimmed by 40 basis points to 5.6 percent.
