, IncMay 26, 2010 - Stocks staged a rebound Wednesday after taking a beating last Thrusday.
The Dow Jones Industrial Average gained 76.93 points (0.77%) to climb to 10,120.68 points. The Dow suffered a shut-out since last Thursday. Not one of its 30 stocks posted a gain. As of yesterday, the Dow had lost 4,120.78 points (29,1%) since reaching its 2007 high on October 11.
Standard & Poor’s 500 made 10.27 points (0.96%) from yesterday to reach 1,084.30. The rise was largely attributed to nine month low closing of the MSCI World Index along with US home sales and durable order’s data signaling that the US might be straighten before a ‘Lehman-Style’ European crisis.
The Nasdaq chalked up 22.47 points (1.016%). Last Thursday the Nasdaq suffered its largest percentage drop since March 2009. This year’s high was reached on April 22nd at 2,706.67 it has declined by 502.66 (18.5%) to 2,204.01.
Thursday’s trading session was described as very choppy as in previous days. Investors’ attention, they said, were caught between “concerns about global growth and willingness to scoop up shares beaten down in the recent sell-off.”
The Wall Street rally today is mainly due to the global growth forecast for 2010 by OECD. This is a twice a year report by the Paris-based organization. They are forecasting a 4.6pc in 2010 and 4.5pc in 2011.
Investors welcomed any news that will dispel uncertainty in the market.
“As long as people feel like they know what the rules are, they feel like they can position themselves to make money,” said Peter McCorry of Keefe, Bruyette & Woods. “It’s the possibility that the rules might change in the middle of the game that scares people.”
Stewart Lawson
Senior Staff Writer - GoldPrice.net
