Major Averages Move Sharply Higher At The Open

(RTTNews) - With traders expressing optimism about overseas stimulus, stocks moved sharply higher at the start of trading on Friday. The Dow and the S&P 500 jumped to new record highs, although buying interest has waned since the open.

The initial strength on Wall Street was partly due to news that China's central bank cut its benchmark interest rates for the first time since July of 2012.

The People's Bank of China said the one-year lending rate was reduced by 0.4 percentage points to 5.6 percent, while the one-year deposit rate was lowered by 0.25 percentage points to 2.75 percent.

Positive sentiment was also generated by comments from European Central Bank President Mario Draghi indicating that the bank may broaden its asset purchases in an effort to boost inflation.

However, the focus on developments overseas comes amid a quiet day on the U.S. economic front, potentially leading to below average trading activity.

Steel stocks have shown a substantial move to the upside in early trading amid optimism about the outlook for Chinese demand.

The NYSE Arca Steel Index has surged up by 4.2 percent, continuing to regain ground after ending Wednesday's trading at its lowest closing level in over a year.

Early strength is also visible among gold and energy stocks, which are moving higher along with most commodities prices. Chemical, housing, and defense stocks are also seeing notable strength.

In recent trading, the major averages have pulled back off their highs for the young session, but they remain firmly positive. The Dow is up 139.93 points or 0.8 percent at 17,858.93, the Nasdaq is up 30.32 points or 0.6 percent at 4,732.19 and the S&P 500 is up 15.94 points or 0.8 percent at 2,068.69.