Last week was not the best in the stock market world. In fact, it probably caused a great deal of hyperventilation as it dipped as low as it’s ever been since the recession. Thank goodness the roller coaster is once more on the upswing and the stock numbers are, at least for this past Monday, on the upswing.
By the time stocks closed Monday, the Dow Jones Industrial Average had climbed 2.5 percent, or 272 points. That is more than a third of what was lost last week. The Nasdaq saw a 1.3 percent gain and the S&P 500 went up 2.3 percent. Toronto also showed signs of recovery after a 6.6 percent loss, over 800 points, last week. This city’s lead index picked up 2.1 percent, or 244 points, on Monday. Banks and energy stocks did the best, with both sectors gaining roughly three percentage points. Gold also saw a turn around, despite a dip in the price of bouillon recently.
Analysts believe the turn around has to do with the apparent solution to the European debt problem, specifically concerning Greece. At a meeting of the International Monetary Fund, the politicians in attendance finally understood that what they were doing was not working. Out of that meeting came new ideas to cut European Interest Rates, increase the dollar amount, or Euro amount of the bailout program and to offer short term, 12 months, loans to banks in dire straits. Here’s hoping the Congress in the United States follows suit.