Wall Street ends quarter with rally
Financial markets around the world stormed higher on Friday after European leaders came up with a breakthrough plan to rescue banks, relieve debt-burdened governments and restore investor confidence.The Dow Jones industrial average climbed 277 points, its second-biggest gain this year, and stocks advanced even further in Europe, in strong and weak countries alike.
The price of oil posted its biggest one-day increase in more than three years, and other commodities shot higher - signs of hope that a deal in Europe will remove a big barrier to a healthier world economy.
In Brussels, leaders of the 17 countries that use the euro appeared finally to have found a broad strategy to fight a debt crisis that has hounded European governments and world investors for three years.
The leaders agreed to pump money directly into stricken banks, let some countries tap into rescue money without submitting to stringent budget requirements and, later, tie European governments closer in economic union.
David Kelly, chief global strategist at JPMorgan Funds, said it was becoming clear that European leaders will compromise to solve the crisis. One of the biggest stock gains Friday came in Germany, which took a hard line in earlier negotiations.
In New York, the Dow Jones industrial average closed up 277.83 points, or 2.2% at 12,880.09, only a sliver below its high for the day.
The Standard & Poor's 500 index soared 2.5 %. The rally left the S&P with a gain of 8.3 % at the halfway mark for the year.
Traders sold US Treasurys, sending the yield on the 10-year Treasury note up to 1.65 % from 1.57 % late Thursday, as demand decreased for ultra-safe investments.
David Kelly, chief global strategist at JPMorgan Funds, said it was becoming clear that European leaders will compromise to solve the crisis. One of the biggest stock gains Friday came in Germany, which took a hard line in earlier negotiations.
In New York, the Dow Jones industrial average closed up 277.83 points, or 2.2% at 12,880.09, only a sliver below its high for the day.
The Standard & Poor's 500 index soared 2.5 %. The rally left the S&P with a gain of 8.3 % at the halfway mark for the year.
Traders sold US Treasurys, sending the yield on the 10-year Treasury note up to 1.65 % from 1.57 % late Thursday, as demand decreased for ultra-safe investments.
© 2013 Press Association