Stocks Finish Higher After Upbeat Data; Philly Fed Manufacturing Index Beats Expectations
U.S. stocks rallied Thursday after an upbeat report on factory activity helped shift the focus away from concerns that the Federal Reserve might raise interest rates sooner than expected.</br></br>The Dow Jones Industrial Average climbed 108.88 points, or 0.7%, to 16331.05. The S&P 500 advanced 11.24 points, or 0.6%, to 1872.01, and the Nasdaq Composite Index gained 11.68 points, or 0.3%, to 4319.29.</br></br>The rally wiped away Wednesday's 0.6% drop in the S&P 500, which came after Fed Chairwoman Janet Yellen said in a news conference that the central bank could raise rates "something on the order of six months" after it winds down its bond-buying program. That could mean a rate increase as early as April of next year, instead of later in 2015, as many had expected.</br></br>Stocks had started Thursday's session lower, but major benchmarks turned higher after the Philadelphia Federal Reserve's manufacturing-activity index for March topped expectations. Other economic data were firm as well, giving credence to the idea that soft reports clouding markets earlier this year reflected cold winter weather rather than a true growth slowdown.</br></br>The rebound also came as investors rethought Ms. Yellen's comments.