US stocks rally after worst week of year (Lead)May 22nd, 2012 - 8:44 am ICT by IANS
New York, May 22 (IANS) US stocks rebounded Monday after major indexes suffered their worst weekly losses of the year in the previous week.
The Dow Jones industrial average gained 135.10 points, or 1.09 percent, to settle at 12,504.48, which was the first time for the blue-chip index to gain tree digits since April 26, Xinhua reported.
The Standard & Poor’s 500 was up 20.77 points, or 1.60 percent, to 1,315.99, the second best performance for the year.
The Nasdaq Composite Index surged 68.42 points, or 2.46 percent, to 2,847.21. Monday’s technical bounce rally came after major indexes fell every day last week, posting their worst week since the beginning of the year.
Investors felt wary after leaders of eight industrial countries concluded their meeting during the weekend and only gave verbal backing for Greece to stay in the euro.
However, there were rumors saying that European policy makers will boost a pan-European bank deposit programme, which was considered as a positive move to protect depositors’ interests.
Adding to the gains, Chinese Prime Minister Wen Jiabao promised to boost China’s consumption rather than focusing on curbing inflation during the weekend, which gave some big name company like Caterpillar a boost as they rely very much on China demand.
Social media company Facebook, however, plunged about 11 percent Monday, sharply below its initial public offering price of $38, suggesting a strong sell-off after its debut last Friday.
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