U.S. equities closed sharply higher Friday after the Chinese central bank cut interest rates and after three tech giants posted better-than-expected earnings.
"[The rate cut] is a very short-term positive," said Peter Cardillo, chief market economist at Rockwell Global Capital. He also said that, while the central bank is stimulating the economy by cutting rates, the move could also signal China's economy is weaker than people think.
The People's Bank of China cut interest rates for the sixth time since November to 4.35 percent, effective from Oct. 24.
"It's just so hard to judge what's going on there because there'very little good data," said Maris Ogg, president at Tower Bridge Advisors. "You can't interpret this as mixed news; it's more of a question mark."
"China is very deliberate in what they do, and it seems to me they are doing what they can to hold somewhat of a 7 percent growth rate," said Randy Frederick, managing director of trading and derivatives at Charles Schwab.
Stocks opened sharply higher and extended gains in afternoon trading, when they hit session highs. The Nasdaq also posted its best close since Aug. 19.
"I can't say we're out of the woods, but I think this is a pretty good environment to be in right now," said Robert Pavlik, chief market strategist at Boston Private Wealth.
The move higher built on Thursday's rally, which saw the Dow Jones industrial average close up over 300 points, while the S&P 500 and the Nasdaq Composite also ended sharply higher after European Bank President Mario Draghi left the door open for further quantitative easing.
Major indexes for the week