US stock market climbs as world banks slash interest rates

U.S stock market futures opened higher Thursday on actions taken by central banks in Europe and China to cut key interest rates and pump stimulus money . The Dow rose 26 points to 12893 as the US stock market awaits today's reports on unemployment claims and retail sales.

Richard Drew/AP
In this July 3, 2012 file photo, a trader studies his screen as he works on the floor of the New York Stock Exchange. The US stock market rallied early hard Thursday after China surprised investors with its second rate cut in a month, a move that is designed to shore up economic growth in the world’s second-largest economy.

Actions taken by central banks in China and Europe are sending U.S. stock market futures higher.

The Bank of England will pump another $78 billion into a stressed economy and the central bank of Europe cut its benchmark interest rate by a quarter of a percentage point. Beijing is cutting a key interest rate for a second time in a month to avert a significant downturn as its economy slows.

Dow Jones industrial average futures are up 26 points to 12,893. Standard & Poor's 500 added 4 points to 1,372 and Nasdaq futures are up 4.75 points to 2,646.25.

The Labor Department releases its weekly unemployment benefits report Thursday and economists believe that the number of people seeking assistance has stabilized.

Retailers are reporting their sales for June.

of stories this month > Get unlimited stories
You've read  of  free articles. Subscribe to continue.

Unlimited digital access $11/month.

Get unlimited Monitor journalism.