NEW YORK — U.S. stocks rose Thursday after Europe’s central bank became the latest to spell out how it will close the spigot on the emergency stimulus it’s flooded the market with in recent years.
More evidence also arrived to show that the U.S. economy is improving, including a better-than-expected report on retail sales, and the S&P 500 was on pace for its fourth gain in the last five days.
KEEPING SCORE: The S&P 500 was up 12 points, or 0.5 percent, at 2,788, as of 10:30 a.m. Eastern time. The Dow Jones industrial average gained 95, or 0.4 percent, to 25,296, and the Nasdaq composite rose 65, or 0.8 percent, to 7,760.
STIMULUS WATCH: The European Central Bank said it will begin phasing out its bond-buying program in the autumn before ending it after December. That could have worried investors, who have grown accustomed to big stimulus programs from central banks in support of markets. But the ECB also said that it will hold off on raising interest rates until at least the summer of 2019, which was more accommodative than some investors had been expecting.
Europe’s central bank is following the lead of its U.S. counterpart, the Federal Reserve, which has already halted its bond purchases and has raised interest rates seven times since late 2015. Its latest move was on Wednesday, when it raised its benchmark rate by another quarter of a percentage point and indicated two more increases may come this year. Higher rates can help stave off inflation, but they can also hinder economic growth.
Next up on the global calendar is the Bank of Japan, which meets Friday on interest-rate policy. Many economists expect it to announce no changes to its stimulus program.
WORLD MARKETS: European stocks were up more than U.S. indexes, with