Stock Market Watch

Stocks Surge after Central Banks’ Action to Boost Liquidity

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A joint move by top central banks, including the Federal Reserve and the European Central Bank, sparked a huge rally in U.S. and European equity markets. Stocks were also pushed higher after China slashed reserve requirements for the country’s banks, indicating that the world’s second largest economy is looking to boost growth. Strong jobs data in the U.S. also lifted sentiments.

All three major indexes in the U.S. extended their gains in late trading to finish at session highs. The Dow Jones ended the day 4.24% higher at 12,045.68, the S&P 500 ended the day 4.33% higher at 1,246.96, and the Nasdaq ended the day 4.17% higher at 2,620.34.


Basic Materials stocks led the gains in the S&P 500 today, ending the day 5.94% higher. Industrials ended the day 5.27% higher, while Conglomerates ended the day 5.76% higher. Energy stocks ended the day 5.16% higher. Financials ended the day 5.33% higher.

Among the major gainers in trading today were Zoltek Companies Inc. (NASDAQ: ZOLT), which ended the day 43.28% higher at $8.21, Freeport-McMoRan Copper & Gold Inc. (NYSE: FCX), which ended the day 8.55% higher at $39.60, Chevron Corporation (NYSE: CVX), which ended the day 5.58% higher at $102.82, The Fresh Market Inc. (NASDAQ: TFM), which ended the day 7.01% higher at $39.23, American Eagle Outfitters (NYSE: AEO), which ended the day 3.57% higher at $13.91, Finisar Corporation (NASDAQ: FNSR), which ended the day 7.77% higher at $18.44, and Synopsys Inc. (NASDAQ: SNPS), which ended the day 3.44% higher at $27.97.

European markets also rose sharply in trading today following the announcement from top central banks that they will implement measures to boost liquidity in the financial system. The FTSE 100 Index in London ended the day 3.16% higher at 5,505.42 and the CAC 40 Index in Paris ended the day 4.22% higher at 3,154.62.

 

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edliston
Post Written By: Ed Liston

Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications. He is widely quoted in various financial publications on the Internet. When Ed is not writing about stocks, investing in stocks, talking about stocks, or otherwise doing something stock related, he likes to go sailing and fishing in his yacht.


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Ed Liston

Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications. He is widely quoted in various financial publications on the Internet. When Ed is not writing about stocks, investing in stocks, talking about stocks, or otherwise doing something stock related, he likes to go sailing and fishing.

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