Wall Street explodes higher, Dow Jones advances 658 points

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NEW YORK, New York – Hope the Fed will not be as aggressive with future rate hikes, following the release of further strong economic data, saw U.S., European, and UK stocks rally Friday.

“The market is getting a little bit more convinced that the Fed is probably not going to be delivering a full point rate increase at the end of the month and that we’re getting close to seeing peak Fed tightening get priced into the market,” Edward Moya, a senior analyst at OANDA told CNBC Friday.

“That’s giving some relief for investors to scale back into equities,” he said.

The Dow Jones industrials surged 658.01 points or 2.15 percent to close Friday at 31,288.26.

The Standard and Poor’s 500 climbed 72.78 points or 1.92 percent to 3,863.16.

The Nasdaq Composite added 201.24 points or 1.79 percent to 11,452.42.

As stocks surged, the U.S. dollar eased. By the New York close Friday, the euro had clawed its way up to 1.0073. The British pound edged up to 1.1854. The Japanese yen rose to 138.55. The Swiss franc firmed to 0.9778.

The Canadian dollar was little changed at 1.3029. The Australian dollar rallied to 0.6788. The New Zealand dollar increased to 0.6152.

Overseas, the German Dax surged 2.76 percent. The Paris-based CAC 40 jumped 2.04 percent. In London, the FTSE climbed 1.69 percent.

Conversely, China’s Shanghai Composite dived 53.68 points or 1.64 percent to 3,228.06.

In Hong Kong, the Hang Seng shed 453.49 points or 2.19 percent to 20,297.72.

The Australian All Ordinaries declined 50.60 points or 0.74 percent to 6,798.00.

Across the Tasman in New Zealand, the S&P/NZX 50 fell 65.36 points or 0.58 percent to 11,122.61.

Japan’s Nikkei 225 was a shining light amongst the gloom, with the key index going in the opposite direction, adding 145.08 points or 0.54 percent to 26,788.72.

South Korea’s Kospi Composite edged up 8.66 points or 0.37 percent to 2,330.98.