Business

Wall Street rises as shrugs off rate fears

NYSE traders Image copyright Reuters

(Close) US stocks recorded their biggest gains for two months boosted by hopes the Federal Reserve will not raise US interest rates when it meets next week.

The S&P jumped 1.47% to 2,159.04 and the Nasdaq surged 1.68% to 5,211.89.

The Dow Jones rallied 1.32% to end at 18,325.07.

In a speech, Fed member Lael Brainard urged caution about hiking interest rates too early, saying economic weakness "counsels prudence."

Her comments reassured investors after Boston Fed president Eric Rosengren said on Friday that higher rates were needed to stop the US economy overheating, sending the main three indexes down around 2%.

Ms Brainard's speech followed earlier comments by Atlanta Fed Bank President Dennis Lockhart and his Minneapolis counterpart Neel Kashkari in which they both suggested there was no urgency to raise interest rates.

"There's not enough ammunition for a September rate rise. The market wants to put this off as long as possible," said Jake Dollarhide, chief executive officer of Longbow Asset Management.

HP Inc was one of the biggest risers, jumping 3% after announcing a deal for Samsung's $1bn printer business.