The broader markets reacted positively to a jobs report that more or less met optimistic expectations as well as news out Europe that its Central Bank will take measures to encourage lending.
The move by the ECB is expected to jumpstart what has been a lackluster recovery and threats of deflation in several countries in Europe by reducing interest rates to near zero. The rates slash mirrors similar stimulus measures undertaken by the US that have so far seemed to be successful. Additional actions undertaken by the ECB include offering long-term loans at lower rates and buying loans for small businesses.
The ECB did stop short of initiating QE like the US did, but the actions undertaken still inspired investors in the US enough to send the US indices into the black.
The Dow closed at a record on Thursday, with 27 of the 30 components of the DJIA experiencing gains in June 5 trading action. Construction equipment manufacturer Caterpillar (CAT) leading the pack with a 2.54 percent uptick, with Microsoft (MSFT) and JPMorgan Chase & Co. (JPM) following close behind with gains of 2.21 percent and 1.71 percent, respectively.
The S&P as well hit an all-time high, with Joy Global (JOY) and Amazon (AMZN) both recording gains above five percent amid heavy volume. The Nasdaq led them all, with a resurgence in small- and micro-cap tech plays contributing to the index’ 1.04 percent gain.
Results for June 5, 2014
Standard & Poor’s 500: +.63 percent to 1,940 points
Dow Jones Industrial Average: +.59 percent to 16,836 points
- NASDAQ Exchange: +.1.04 percent to 4,296 points
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