FOX Business: Capitalism Lives Here
The Dow and S&P 500 zipped up to new highs on Thursday as traders cheered moves by the ECB aimed at jumpstarting the eurozone's economy.
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The Dow Jones Industrial Average rose 98.58 points, or 0.59%, to 16836.11, the S&P 500 advanced 12.58 points, or 0.65%, to 1940.46 and the Nasdaq Composite rose 44.59 points, or 1.05%, to 4296.23.
The ECB cut its main refinancing rate to a historic low of 0.15% from 0.25%, and sliced its deposit rate to -0.1% from 0%. The central bank also said it is working on a bond-purchasing program, and will take other measures to boost liquidity among eurozone banks. The moves come as the ECB looks to boost inflation and economic activity across the struggling currency bloc.
Not everyone agrees the ECB will be able to materially lift inflation, or put pressure on the euro by cutting interest rates.
"Despite the ECB’s best efforts, the cost of money is certainly not the binding constraint on the European economy and banks ahead of the ECB Asset Quality Review have been more focused on shrinking their balance sheets rather than adding aggressively to their loan books," Peter Boockvar, chief market analyst at The Lindsey Group, wrote in a note to clients.
"On the euro impact which is certainly a key focus of the ECB, outside via outright money printing, it’s never easy to put one’s [currency] rate to the level one wants for any prolonged period of time."
Meanwhile, the Bank of England held interest rates at historic lows and said it would hold steady its asset purchase target of 375 billion pounds.
On the U.S. front, traders will get a look at weekly jobless claims at 8:30 a.m. ET. Economist forecast 310,000 Americans applied for first-time unemployment benefits last week, from 300,000 the week prior.
The key monthly jobs report from the Labor Department is due on Friday.
Elsewhere, U.S. crude oil futures fell 40 cents, or 0.39%, to $102.23 a barrel. Wholesale New York Harbor gasoline dipped 0.22% to $2.929 a gallon. Gold slipped slightly to $1,244 a troy ounce.