US stocks boosted by China rate cut



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(Close): US stocks closed at yet another record high after China announced a surprise rate cut and the head of the European Central Bank hinted at further stimulus action.

The Dow Jones rose 91.06 points to 17,810.06, while the S&P 500 climbed 10.75 points to 2,063.50.

That was the 28th record high for the Dow and the 45th record for the S&P 500 this year.

The technology-focused Nasdaq gained 11.10 points to finish at 4,712.97.

In an attempt to boost growth, China will cut its one year deposit rate to 2.75% from 3.0%, and trim its one-year lending rate to 5.6% from 6%.

Sentiment among investors was also boosted by comments from Mario Draghi, the head of the European Central Bank (ECB).

Mr Draghi said the ECB was ready "step up the pressure" and take more measures to try to boost growth in the eurozone.

The ECB has already cut its benchmark interest rate to 0.05% and begun some asset purchases, but Mr Draghi said the bank could alter "the size, pace and composition of our purchases".

One of the day's biggest winners was equipment maker Caterpillar, which saw its shares rise over 4%.

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