After growing cold for the past trading days, Wall Street rallied back Thursday. The Dow Jones gained 0.5% (41 points), the S&P 500 by 1% (9 points) and Nasdaq by 1.5% (25 points).
S&P and Nasdaq both fell from the week’s first trading day and the Dow fell two out of three sessions.
The rally was spurred on by report that defined expectations and growing economic optimism. The recent selloff gave investors the window to get into stocks.
Bets that the economy is closer to stabilizing has fueled the recent rally, lifting all three major gauges by more than 30% over 9 weeks. But a few recent reports have raised worries that investors may have gotten ahead of themselves, including Wednesday’s weak retail sales report and Thursday’s surprise rise in jobless claims.
Many analysts have been pegging a sooner-than-expected recovery due to the surge that the market has been experiencing. The recent slump is not expected to affect the overall surge in the coming months.
Source: CNN Money
