Dow Jones Industrial Hits New High
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Spencer Platt/Getty Images(NEW YORK) — The Dow Jones Industrial Average is trading at new highs Friday thanks to an interest rate cut by the People’s Bank of China and the suggestion of new stimulus by the European Central Bank.
As of 10 a.m., the Dow was up about 162 points.
Markets generally go up when central banks cut interest rates.
This sort of immediate jump does not say much about the health of economies around the world. They are an indication of investors moving money into assets that they think will make money in coming months.
It remains to be seen whether China’s interest rate cut will lead to a stronger economy.
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