Ratings firm Moody’s has raised its outlook on the US economy to “stable” from “negative”, citing progress in putting the federal government’s debt on a more sustainable path.
“Moody’s Investors Service today moved the outlook on the Aaa government bond rating of the United States back to stable, replacing the negative outlook that has been in place since August 2011,” the company said in a statement today.
On Wall Street the Dow and the S&P 500 both closed at new record highs due to robust corporate earnings reports and the latest reaffirmation of the Federal Reserve’s easy-money policy.
At the closing bell, the Dow Jones Industrial Average rose 78.63 (0.51 per cent) to 15,549.15, up from Monday’s record of 15,484.26.
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The S&P 500 ended 8.50 (0.51 per cent) higher at 1,689.41, breaking Monday’s all-time close at 1,682.50.
The tech-rich Nasdaq Composite Index, meanwhile, eked out a gain of 1.28 (0.04 per cent) to 3,611.28 after some disappointing earnings reports, including from Intel.
European shares advanced on unexpectedly positive US jobs data and more expected testimony from US Federal Reserve chief Ben Bernanke that he had no preset plans to wind down stimulus.
“The improved weekly jobless claims data out of the US appears to have been the catalyst for this push higher, with markets keeping a close ear on events in Washington and the second day of Bernanke’s testimony,” said Michael Hewson, Senior Market Analyst at CMC Markets UK.
At close, London’s FTSE 100 index of leading shares was up 0.95 per cent to end at 6,634.36 points.
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