Greece to Push U.S. Stocks

U.S. stocks rebounded sharply turned up or on Monday (05/10/2010) local time with the blue chip Dow index closed up nearly 4 percent after a massive rescue package for the euro zone reduce investor fears of debt crisis.

Dow Jones Industrial Average jumped 404.71 points (3.90 percent) to 10785.14 after turbulent week for Wall Street which saw the index had dropped nearly 1,000 points on Thursday.

Following a strong rise by the Asian and European stocks, the Dow recorded their greatest increase in a single session since March 2009.

The NASDAQ composite index rose 109.03 points (4.81 percent) to 2374.67, the first triple-digit daily increase since October 2008, while the index of the Standard & Poor's 500 rose 48.85 points (4.40 percent) to 1159.73 .

Investors reacted positively to the joint adoption by the European Union and the International Monetary Fund, Monday, the beginning of the aid package 750 billion euros (about one trillion U.S. dollars) to neighboring Greece and the euro zone to ease a crisis that threatens the global economic recovery.

After the announcement, the U.S. Federal Reserve, European Central Bank, and central banks in Japan, UK, Canada, and Switzerland said they would intervene to ensure that the dollar shortage is not happening in the European market.

Some experts wondered whether the massive stock gains on Monday is the beginning of the rebound to the highest in 2010-which occurred just a few weeks ago, or just a short term rally from last week's slump, which is the culmination of the worst weekly loss in one year, said analysts at Briefing.com.

"Time will know whether the coordinated action was successful. For today is spurred massive trade assistance based on the idea that it's only possible answer," said Patrick O'Hare, an analyst at Briefing.com market top.

"Anyway, while there is a sense of relief in the market today about monetary power is applied, there will be a price to pay for the bailout of fiscal (bailout) for those who need it," he warned.

Rescue agreements consist of 440 billion euros from euro zone countries, and 60-billion-euro loan from the European Commission. Spanish Finance Minister Elena Salgado said the IMF will offer 250 billion euro facility.

Analysts at Charles Schwab & Co., said the financial rescue package from IMF-EU 110 billion euros to Greece has cooled spread the fear of debt and preserve the prospect of the euro zone continued global recovery. "Our opinion is that the risk reward ratio has become positive again," said Wells Fargo chief market strategist Al Goldman.