FX.co ★ The US stock market review for May 10, 2010-05-11

The US stock indices grew considerably on Monday, having registered the largest intraday increase over a year. Acceptation of a help package to the euro are counties amounting to almost USD 1 billion helped to stabilize the European debt crisis which in its turn pushed upwards the stocks of numerous companies. Dow Jones Industrial Average was up by 404,71 points or by 3,90% to 10785,14 points, interrupting the decrease which was observed for four sequential sessions. As compared to the previous day, Dow showed the highest growth since March 3, 2009. Last week the index fell to the negative area, now it is trading with an ascend by 3,42% year-on-year. Nasdaq Composite increased by 109,03 points or by 4,81% to 2374,67 points. This has been the most considerable growth in points since October 28, 2008 and the largest in percentage ratio since March 2009. The index is trading in the positive area again y-on-y, with an ascend by 4,65%. Standard & Poor's 500 added 48,85 points or 4,40% to 1159,73 points. This has been the highest growth as compared to the previous session since March 23, 2009. The index is trading with an increase by 4.00% y-on-y.
Caterpillar stocks climbed by $4,59 or by 7,4% to $66,69, while the Bank of America stocks uprose by $1,12 or by 6,9% to $17,30. The GE grew by $1,16 or by 6,9% to $18,04. The rise of the stock indices followed the EU accepting the help package to the overloaded by debts countries in the amount of EUR 750 billion. In the limits of this pack the euro are governments should provide EUR 440 bill., EUR 60 billion will be given from the emergency fund of the EU and EUR 250 billion will be provided by the IMF. Moreover, the ECB will buy the sovereign bonds of the eurozone countries and the US FRS in co-operation with other central banks has reactivated the credit lines for foreign institutions. These decisions made a release for the investors who doubted the ability of EU to fight the debt crisis in Greece.