U.S. stocks bounce on economic optimism; dollar pauses rally – Reuters

U.S. stocks bounce on economic optimism; dollar pauses rally – Reuters

NEW YORK, Oct 13 (Reuters) - Wall Street rose on Wednesday in choppy trade as investors saw an imminent end to ultra-loose U.S. monetary policy as a vote of confidence in the economy, while two-year Treasury yields hit 18-month highs on bets that policy tightening is in the offing.

Indeed, the Federal Reserve signalled on Wednesday it could start reducing its crisis-era support for the U.S. economy - which is set to grow this year at its fastest pace in decades - by the middle of next month, with a growing number of policymakers worried that high inflation could persist longer than previously thought. read more

General optimism about economic growth helped the S&P 500 (.SPX) to reverse losses late in the day to gain 0.30%, while the Nasdaq Composite (.IXIC) jumped 0.73% and the Dow Jones Industrial Average (.DJI) ended flat.