U.S. stocks capped a week that already had several record highs by delivering a couple more.
The Dow Jones industrial average and Standard & Poor's 500 index carved out all-time highs on Friday, extending the market's gains for the week. It was the third record close for the Dow in the week and the fourth for the S&P 500.
The S&P 500 index rose 10.75 points, or 0.5 percent, to 2,063.50. That's just above the index's previous high close a day before at 2,052.75. The S&P 500 is up 11.6 percent this year.
The Dow gained 91.06 points, or 0.5 percent, to 17,810.06. That's up from its last record close of 17,719 on Thursday. The Dow as gained 7.4 percent this year.
The Nasdaq composite added 11.10 points, or 0.2 percent, to 4,712.97. The index is up 12.8 percent for the year.
The latest records extended a comeback in the S&P 500, which has increased 11 percent since plunging in mid-October.
Investors on Friday cheered news of an interest rate cut in China and the possibility that Europe's central bank will step up stimulus efforts in the region.
"What it suggests is that these central banks are prepared to do even more to stimulate growth, to stimulate demand, and that always equates to better stock markets," said Quincy Krosby, a market strategist at Prudential Financial.
Energy stocks were among the big gainers, getting a boost from a rebound in oil prices. Some traders anticipated that the Organization of Petroleum Exporting Countries will decide to cut production at a conference next week.
A strong third-quarter earnings season, on top of a recent string of positive U.S. economic data on housing, jobs and manufacturing, have helped put investors in a buying mood.
The prospect of central banks outside the U.S. expanding their stimulus efforts is seen as another positive for stock investors, particularly with the Federal Reserve winding down its bond-buying program this year.
"Central bank intervention is the No. 1 thing investors worldwide are looking at right now," said Mike Serio, regional chief investment officer at Wells Fargo Private Bank. "In the short run, that looks pretty good for stocks."
On Friday, China's central bank lowered the interest rate on its one-year loans to financial institutions by 0.4 percentage point to 5.6 percent.
European Central Bank President Mario Draghi also caused a stir in markets when he told an audience in Frankfurt, Germany, that the bank is willing to "step up the pressure" and increase its efforts to stimulate Europe's struggling economy.
China's interest rate cut raised hopes for increased economic activity and oil demand. That helped lift oil prices.
Benchmark U.S. crude gained 66 cents to settle at $76.51 a barrel in New York. Brent crude, a benchmark for international oils used by many U.S. refineries, rose $1.03 to close at $80.36 on the ICE Futures exchange in London.
U.S. government bond prices rose. The yield on the 10-year Treasury note fell to 2.31 percent from 2.34 percent late Thursday.
Business on 11/22/2014