US stocks and dollar strengthen on Fed and strong economic data

Strengthening stocks and the dollar: U.S. stocks rose along with the dollar, driven in part by positive U.S. economic data and expectations of an interest rate cut by the Federal Reserve (Fed).

Strong economic data: U.S. retail sales rose in August and factory output rebounded from the bottom, easing fears of an economic slowdown.

Expected rate cuts: The Fed is expected to cut interest rates by 25 basis points. Some speculation has even suggested the possibility of a more aggressive cut of up to half a percentage point.

Analyst Comment: Peter Cardillo of Spartan Capital Securities said strong economic data points to a healthy U.S. economy and he expects further clues on future Fed policy.