US stocks rally despite Moody's bank downgrades
Washington - Major US stock indices rallied Friday despite the downgrade of 15 international banks by Moody's rating agency.
The downgrades, announced late Thursday, were not as serious as many had been expecting. Moody's had indicated in February it would downgrade banks, but did not say how much.
Investment strategist Jeffrey Saut of Raymond James and Associates told Bloomberg news service that the downgrades were not as bad as had been expected.
"They had been telegraphing the bank downgrades for a long time. Why does anybody pay any attention to those rating companies? They missed it during the financial crisis," he said.
The blue-chip Dow Jones Industrial Average rose 67.21 points or 0.53 per cent to 12,640.78. The broader Standard & Poor's 500 Index gained 9.51 points, or 0.72 per cent, to 1,335.02. The technology-heavy Nasdaq Composite Index rose 33.33 points, or 1.17 per cent, to 2,892.42.
The US currency fell against the euro to 79.52 euro cents from 79.72 euro cents on Thursday. The dollar rose against the Japanese currency to 80.46 yen from 80.32 yen.//DPA
