Oct. 21: US stock market went up sharply this afternoon. Dow Jones Industrial Average (DJIA) up 2.3% while S&P 500 Index went up by 1.8%
Friday morning U.S. stocks opened much higher as investors gained confidence following the announcement aboiut resolved conflicts over the European debt crisis.
Scott Brown, Raymond James Chief Economist, said, “Europe is still the main concern. Earlier this month, we had these two big fears about recession in the U.S. and worries about Europe. The worries about recession are starting to recede a bit, and in Europe, we’re expecting to get some definitive answer in the next week.”
Thursday evening U.S. stocks ended mixed.
The tussle between Germany and France had been making the investors edgy as the biggest contributors to the euro zone bailout mechanism fought over ways to structure the fund to effectively stem the spread of the crisis.
As soon as the German announced the absence of any serious differences between Germany and France, adding that banks’ recapitalization should be decided at a meeting of EU finance ministers this Saturday, the clouds of doubt parted in the economy.
Rating agencies had been sending warning over the creditworthiness vulnerable euro zone members like Spain, Italy and Portugal, and also France.
Investors concentrated on the latest corporate earnings reports. General Electric saw falling shares following its announcement of earnings of 31 cents per share in the third quarter. Verizon and McDonald’s shares shot up following reports of third-quarter profit and revenue that exceeded expectations.