Week on Wall Street: Fed Rescues Stocks
Stocks traded higher on Friday, helped by a broadly weaker yen and a pair of strong earnings reports.
"With the yen weaker today you're seeing some money flow back into some of the riskier assets, U.S. stocks included," said David Lutz, senior trader at Stifel Nicolaus.
The greenback gained on the yen as traders felt more comfortable putting risky carry trades back on the table, which involve selling the Japanese currency for higher-yielding units. The yen fell to a six-week low against the euro.
Analysts said Tuesday's Fed rate cut took some of the sting from the impact of credit problems on the U.S. economy.
"People think it's OK to take on risk because of what the Fed has done and continue on with carry trade," said Brian Taylor, senior currency trader at M&T Bank in New York.