US mkts hit 17-month high; Dow gains 1.7% in 7 sessions

By Reema Tendulkar, Research Analyst at CNBC-TV18

The US markets hit 17-month high after a subtle seven-day rally on Dow Jones. Lower than expected inflation data is signaling no pressure on Fed to change its stance.

The Dow Jones Industrial Average was up 0.5% at 10,734. The S&P 500 Index rose 0.6% to 1,166 and Nasdaq advanced 0.5% to 2389.

The Dow gained 1.7% in the past 7 trading session with 1231 individual stocks hitting 52-week high.

European markets ended higher on Wednesday. The FTSE was up 0.4%, DAX up 0.9% and CAC up 0.5%. CBOE VIX was down 4.4% at 16.91 (first time below 17 since May 2008).

Asian markets were trading higher. Hang Seng was up 0.2%, Taiwan up 0.15%, Shanghai up 0.1% and Kospi up 0.1%.

Economic news:

February Producer Price Index fell 0.6% more than expected, largest decline since July.

Core PPI, which excludes volatile food and energy costs, rose 0.1%.

BoE policy meeting showed members voted unanimously not to extend quantitative easing.

Movers and Shakers:

Ford surged to a five-year high after Moody's upgraded its debt rating on Ford.

Nike was up 3.4% (after closing bell) after posting a net profit that beat analysts' expectations.

Coal miner Massey Energy gained 5.8%a day after it announced the acquisition of privately held Cumberland.