U.S. stocks were sharply higher Friday, boosted by Federal Reserve Chairwoman Janet Yellen’s signal late Thursday that the economy is strengthening and an interest-rate hike is likely before the end of the year.
Revised data on second-quarter U.S. growth appeared to underline that view. Data showed that the economy grew faster than first estimated, driven by higher consumer spending and somewhat stronger business investment.
Friday’s gains were helping the main indexes erase steep losses made earlier the week, with the key benchmarks on track to finish the week roughly where they started. The S&P 500 SPX, +0.87% on Friday rose 16 points, or 0.8%, higher at 1,948. The Dow Jones Industrial Average DJIA, +1.25% jumped 183 points, or 1.1%, to 16,387. The Nasdaq Composite COMP, +0.70% advanced 43 points, or 0.9%, to 4,779.