U.S. stocks rose, erasing most of yesterday’s drop, as improving manufacturing data tempered concern about the economy and Facebook Inc.’s $19 billion purchase of a messaging startup fueled optimism about deals.
U.S. stocks rose as better-than- forecast growth in American manufacturing and Facebook Inc.’s $19 billion WhatsApp Inc. deal overshadowed concern over the global economic outlook. Treasuries fell and shares in European emerging markets dropped while natural gas slipped.
U.S. stocks rallied the most for a week since December as comments from Federal Reserve Chair Janet Yellen reassured investors about the strength of the economy and corporate earnings exceeded estimates.
After U.S. stocks gained 30 percent last year and almost everything went up, measures of Standard & Poor’s 500 Index price momentum are slipping just as concern mounts that emerging markets will snuff out the rally.
The iShares MSCI Emerging Markets Index exchange-traded fund rebounded from a five-month low after a report showing an increase in American consumer spending outweighed concern the Chinese economy is slowing.
U.S. stocks fell the most since November, cementing the Standard & Poor’s 500 Index’s worst start to a year since 2009 as investors weighed equity valuations and the outlook for economic stimulus. The dollar slid to a three-week low against the yen and Treasuries rose.