U.S. equities rose in early trading on Tuesday after the Bank of Japan’s plan to ease monetary policy sparked hopes of a faster global economic recovery.
Shortly after the opening bell, the S&P 500 was up 1 percent to 1,148.18, the Dow Jones Industrial Average had gained 0.8 percent to 10,835.17 and the Nasdaq Composite was 1.2 per cent higher at 2,371.41.
Before the bell, S&P 500 futures edged up after the Bank of Japan said that it was considering creating a Y5,000bn ($59.7bn) fund to buy assets and increase liquidity in the financial system and lowered its interest rate.
Some investors hoped this might open the door for the Federal Reserve to extend its own program of quantitative easing.
“It appears that the Fed will up its game in terms of quantitative easing by buying in more bonds with a view to creating a little bit of inflation and hopefully creating some margins for business and thus helping the horrendous level of unemployment,” said David Buik, at BCG partners.