U.S.-listed companies’ stocks spiked up as Dow Jones industrial average rebounded on Thursday after a lot of distress caused by the impact of European debt crisis on the U.S. market. The previous tendency that kept up until a month ago was a continued downswing, so investors heaved a sigh of profound relief when U.S. stocks went up more than 7 percent. The number of jobless claims dwindled, too.
There have been a lot of pessimistic speculations about whether or not the economical debt pit of Europe is starting to take its toll on the American stocks. However, the leading stock analysts agree on a reassuring expectation for the U.S. market to head for a steady and vigorous recover.
According to the chief market economist at Rockwell Global Capital, Peter Cardillo, the market fluctuations in the U.S. are over for a while as the stocks turn positive and slowly but surely climb. Despite of the general fears brought on by the European indebtedness, a vigorous recovery is on the table for the American stocks.
The debt situation in Europe continues to be a worrying trend, as the Greek stock dives by 9 percent on Wednesday. However, since Greece is the most debt-plagued country in Europe at present, one should not jump to quick conclusions relying othisn the economic data string coming from the Balkans. In Thursday afternoon trading Greek government bond yields soared by 8.78 percent, causing the bond prices to take a nosedive, to provide further evidence for reluctance to invest in government bonds.
The lenders in Greece are prone to panic caused by the obvious insufficiency of the recent ECB measures to control the deflation process. ECB announced taking further actions to improve liquidity and protect the interests of lenders following much turmoil in the Greek Capital last week.
The fluctuations of the U.S. CBOE Volatility Index (VIX) went in sharp spikes during this week after showing a plateau at the level of 15 between June and August; the VIX started climbing steadily, peaking at 31 on Wednesday, but only to go down 5 points in Thursday trading.
Investors felt relief in connection the current opinion held by Philadelphia Fed President Charles Plosser that the U.S. economy downgrade is not considered by the central bank worrying enough to take action. Bloomberg News published an interview with the president of St. Louis Federal Reserve Bank, who said that the U.S. central bank’s quantitative easing program scheduled to end by November might be considered to continue for some more time. This statement immediately caused Standard & Poor’s 500 index to rise sharply.
The Dow Jones industrial average saw a 0.11 percent upswing by 17 points to 16,159.46. The S&P 500 Index improved by 6.28 points, or 0.34 percent, to 1,88.77. The Nasdaq Composite, surged by 12.31 points, or 0.24 percent, to 4,225.40.