Thursday, May 27 SUMMARY:
European debt worry played a large part in the stock market’s recent fall, so it was only fitting that the catalysts for today’s rally should come from overseas. China’s State Administration of Foreign Exchange (SAFE) dismissed rumors that the country is looking to unload its euro-zone bonds. Spain’s parliament approved an $18 billion package of austerity measures by a single vote. These vital developments in the global economy were a much-needed shot in the arm for bulls along with a weekly decline in U.S. jobless claims . As a result, stocks recovered from their recent beating to race higher.
The Dow Jones Industrial Average (DJIA – 10,258.99) had reclaimed the 10,000 level surging nearly 285 points, or 2.9%. However, the Dow could not break through its descending 10-day moving average, which hasn’t been surmounted since May 12.
The S&P 500 Index (SPX – 1,103.06) rose on 35 points, or 3.3%. In the process, the SPX reclaimed not only its 10-day moving average, but also the round-number 1,100
. Finally, the Nasdaq Composite (COMP – 2,277.68) gained 81.8 points, or 3.7%, to notch the day’s biggest percent gain.
Meanwhile, the CBOE Market Volatility Index (VIX – 29.68) was the day’s big loser, dropping 15.3% to end below 30 for the first time since May 13.
Crude futures rose with the equities market today as crude oil for July delivery added $3.04, or 4.3%, to finish at $74.55 per barrel.
Gold futures ended a three session winning streak today as Gold for June delivery closed down $1.50, or 0.1%, at $1,211.90 per ounce. Meanwhile, the more actively traded August contract gave up 90 cents, or 0.1%, to finish at $1,214.40 per ounce.
