US stocks recouped some of their losses today (September 24th) after investors welcomed European Central Bank (ECB) boss Mario Draghi's renewed pledge to keep interest rates low for an extended period.
The Dow Jones industrial average rose 0.1 per cent, to 17,066 as of 09:55 ET, while the Standard & Poor's 500 index rose a point to 1,984 and the Nasdaq composite edged up 0.2 per cent to 4,519. The gains come after the S&P 500 fell for three days in a row.
"Draghi came out and said he is going to do whatever is necessary. That lift from Europe is transferring over here," Peter Jankovskis, co-chief investment officer at OakBrook Investments, told the BBC.
The ECB stance echoes the Federal Reserve chairman Janet Yellen's speech last week, in which she said that there was no "calendar date" for an interest rate rise.
She added the Fed will raise interest rates once a "considerable time" has passed after its stimulus programme ends in October.
"The Committee continues to anticipate, based on its assessment of these factors, that it likely will be appropriate to maintain the current target range for the federal funds rate for a considerable time after the asset purchase program ends, especially if projected inflation continues to run below the Committee's two per cent longer-run goal, and provided that longer-term inflation expectations remain well anchored," the Fed said in a statement.
Meanwhile, US investors continued to focus on Europe's economic malaise and tensions in the Middle East after the US and Arab nations attacked the Islamic State group's headquarters in Syria.
"Geopolitical risk, which has been simmering in the background, is back to the fore" CMC analyst Desmond Chua told AP.
Find up to date information on the FTSE 100 and spread betting strategies at City Index.
GAIN Capital UK Limited (trading as “City Index”) is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, City Index does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.
No opinion given in this material constitutes a recommendation by City Index or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although City Index is not specifically prevented from dealing before providing this material, City Index does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.