Wall Street is surging higher after last week’s sell-off as investors renew optimism for a resolution to the European financial crisis. While no clear plan has been decided on, investors are encouraged by the discussions of various options that European officials have at their disposal. However, the market’s volatility likely won’t subside until a clear decision has been confirmed. In the U.S., the government avoided a shutdown stemmed from an issue on allocating more funds for disaster relief. FEMA, which said it would need to close operations due to lack of funding, said it had enough in its budget to last through the week and allowed lawmakers to slash $1 billion from the bill. Despite Senate majority leader Harry Reid saying that it was a “win for everybody,” the gridlock was another example of legislators unable to efficiently handle the nation’s current economic challenges without political bickering taking center stage. Home prices according to the S&P’s Case-Shiller Index fell 4.1 percent year-over-year, but are up 0.9 percent on an unadjusted basis over the previous month. In commodities, oil prices jumped 4.5 percent as investors hope a Europe solution could help increase economic activity and demand for fuel. Meanwhile, metal prices are bouncing back after suffering a massive drop. Gold is up almost 4 percent to $1,651 and silver is up almost 6.5 percent to $31.85.
Major U.S. Stock Indices
DJIA: 11,323.59 (+2.53 percent)
S&P 500: 1,190.91 (+2.41 percent)
NASDAQ: 2,580.34 (+2.53 percent)
Russell 2000: 690.80 (+3.78 percent)
In other news:
- The SEC is looking to make some changes regarding trading curbs in the event of abnormal trading activity and volatility. [Bloomberg]
- Was Meredith Whitney’s incredibly bearish calls on municipal bonds based on actual research or fear mongering in the market? [CNBC]
- The market’s leading hedge fund is based on the philosophy of Ayn Rand. [Marketwatch]
- Research In Motion (RIMM) enjoyed a little bump as famed investor Carl Icahn is rumored to be interested in a stake of the Blackberry maker. [Bloomberg]
- One Fed official thinks that the Federal Reserve’s Operation Twist, a strategy used to help the economy recover, could actually hurt growth prospects and limit job creation. [Reuters]
Check back for more news.