On Wednesday, stocks rebounded from two days of sharp losses after the Federal Reserve said it is prepared to do more for the economy if conditions warrant, helping to stanch the panicky reaction to Europe’s debt crisis.
Investors sold heavily this week after Greece communicating it would be holding a referendum on an EU bailout crucial to stabilizing the euro zone‘s financial system.
Federal Reserve Chairman Ben Bernanke said the central bank was closely monitoring developments in Europe and left open the possibility that the Fed could expand its holdings of mortgage debt if U.S. economic conditions worsened.
“Bernanke was clear that they were prepared to do more, that they have the tools to do more,” said Tim Ghriskey, chief investment officer of Solaris Asset Management in Bedford Hills, New York. “We remain in a very volatile situation.”
The Dow Jones industrial average rose 178.08 points, or 1.53 percent, at 11,836.04. The Standard & Poor’s 500 Index gained 19.62 points, or 1.61 percent, at 1,237.90. The Nasdaq Composite Index added 33.02 points, or 1.27 percent, at 2,639.98.
No comments yet.
Sorry, the comment form is closed at this time.