Nov. 30 (Bloomberg) -- U.S. stock futures soared after the Federal Reserve and five central banks lowered interest rates on dollar swaps.
S&P 500 futures expiring in December gained 2.6 percent to 1,227.20 at 8:07 a.m. New York time. The benchmark gauge rallied 3.2 percent over the previous two days.
The Federal Reserve and five other central banks agreed to reduce the interest rate on dollar liquidity swap lines by 50 basis points and extend their authorization through Feb. 1, 2013.
The Bank of Canada, Bank of England, Bank of Japan, European Central Bank and Swiss National Bank are involved in the coordinated action, the Fed said in a statement in Washington.
“The purpose of these actions is to ease strains in financial markets and thereby mitigate the effects of such strains on the supply of credit to households and businesses and so help foster economic activity,” the statement said.
To contact the editor responsible for this story: Jeff Sutherland at email@example.com