Markets Rally After Europe Cements Debt Deal
With European debt deal worked out, world markets rallied. The U.S. markets' rally managed to get them into positive territory for the year.
Here's how The New York Times frames the story:
While the deal helped to restore confidence to the financial markets, analysts noted that questions remained about how it would be implemented. They also worried that fully fixing the problems of excessive debt and weak growth could take years.
Still, after days of anticipation, the markets put whatever uncertainties remained behind them, at least for now. Financial stocks in particular were up more than 6 percent.
The Dow Jones finished the day up 2.86 percent and the Standard & Poor's was up 3.43 percent.
"More time has been bought," Hank Herrmann, chief executive of Waddell & Reed Financial, told the Wall Street Journal. "This doesn't look like they're just kicking the can down the road. It is more serious than things in the past."
The Journal points out that good news about U.S. economy also buoyed investors' spirits. As Mark reported earlier, the country's GDP grew at 2.5 percent rate in the third quarter. "The gain was somewhat less than the 2.7 percent growth economists expected but high enough to keep investors' mood upbeat," wrote the Journal.