Stocks Rally on Europe Deal and US Economic Data

October 28 00:00 2011

New York, October 28 ( – The US stock market was back on track for its best monthly gain since October 1974, due to a huge rally in stocks triggered by investors who seem to have approved the latest plan by European leaders to contain the debt crisis. The Dow Jones Industrial Average having gained 2.9% on Thursday tacked on 1,295 points since the end of September. It broke above the 12,000 mark for the first time since the beginning of August. It jumped 340 points to close at 12,209. It was the fifth gain for the Dow in the past six sessions.

The S&P 500 gained 43 points, or 3.4%, at 1,285 and the Nasdaq surged 88 points, or 3.3%, at 2739. London’s FTSE rose 2.9%, and Germany’s DAX closed 5.4% higher. Japan’s Nikkei Average gained 2%, and Hong Kong’s Hang Seng jumped 3.3%.

Commenting on the successful summit of European leaders in Brussels that resulted in a strategic agreement that was accepted by global markets on Thursday, RealMoney columnist James “Rev Shark” De Porre said, “The agreement has been anticipated for weeks, and there were plenty of critics popping up to point out all the flaws, but the process has been so agonizing that it is a tremendous relief to the market to finally have something solid rather than just more talk about deals to make potential deals.”

He added, “The big question now is to what degree the market has already priced in this deal, and whether or not the market can gain more upside momentum from here.”