U.S. stocks climbed, with the Standard & Poor’s 500 Index rising to a record, as Federal Reserve Chair Janet Yellen said the central bank may alter its strategy on stimulus cuts should the economy weaken. The yen gained on worsening Ukraine tensions while sugar surged.
Canadian stocks rose, with the benchmark index near a three-year high, as banks rallied on better-than-forecast earnings and U.S. Federal Reserve Chair Janet Yellen said stimulus cuts could slow if growth weakens.
The Standard & Poor’s 500 Index will rally as much as 23 percent to 1,350 over the next 12 months, propelled by corporate profit growth, according to David Bianco , head of U.S. equity strategy at Bank of America Merrill Lynch.
David Bianco, Deutsche Bank AG’s chief U.S. equity strategist, withdrew a forecast that the Standard & Poor’s 500 Index will post a near-term gain of 5 percent or more, citing uncertainty before Greece’s elections this weekend.
Eliminating the tax on dividends while increasing the capital gains tax rate to 20 percent could add about 1 percent a year to U.S. stock returns with no impact on the federal budget deficit, David Bianco , U.S. equity strategist at Bank of America Merrill Lynch, said in a report.