New York: The Dow and S&P 500 bolted to fresh record highs Wednesday after a Federal Reserve report showed the US economy was growing amid widespread optimism about the outlook.
The Dow Jones Industrial Average rose 33.07 points (0.18 percent) to 17,912.62, its second straight record close. The S&P 500 gained 7.78 (0.38 percent) at 2,074.33, also a record, while the tech-rich Nasdaq Composite Index added 18.66 (0.39 percent) at 4,774.47.
The Fed`s Beige Book, a collection of anecdotal information on current economic conditions, said that "a number" of the central bank`s 12 districts reported contacts "remained optimistic about the outlook for future economic activity."
For the first time in more than a year, the Fed dropped its "modest" and moderate" descriptions of overall growth, saying simply that reports suggest "that national economic activity continued to expand" in the last two months.
Jack Ablin, chief investment officer at BMO Private Bank, said the tone of the latest Beige Book was significantly more enthusiastic than in previous versions.
"It appeared to me that they ramped up their rhetoric," Ablin said. "The Fed really saw a lot of good things happening on a lot of different fronts."
Ablin said some investors may have also bought equities in anticipation of Thursday`s meeting of the European Central Bank, which has hinted it could implement additional stimulus.
