Thursday, the US stock markets ended higher for the third consecutive day with stocks across the board rose on softening of mark to market accounting rules for banks and a surge in factory orders in February. The financial sector after trading in pressure for most of the session finally managed to close in line with the broader market in response to news that the FASB has decided to ease mark-to-market accounting rules for banks. The decision was widely expected.
The Dow Jones Industrial Average (DJIA) surged by 216.48 points to close at 7,978.08. The NASDAQ Composite (RIXF) index increased by 51.03 points to close at 1,602.63 and the S&P 500 (SPX) grew by 23.30 points to close at 834.38.
Further the stocks rose to their highest level in early trading after the G20 leaders pledged an additional $1.1 trillion in financing to the International Monetary Fund in order to tackle the global financial crisis and also declared a crackdown on tax havens and hedge funds.
Moreover some optimism spread followed news that the ECB cut its target interest rate by 25 basis points to 1.25% and also hinted of more rate cuts in future.
On the economic front, the weekly jobless claims came in worse than expected. Initial jobless claims for the week ending March 28 jumped 12,000 to 669,000 as against the expectation of 650,000. Continuing claims exceeded expectations as well as it stood at 5.73 million, while economists expected 5.59 million claims.
The factory orders for the month of February mounted by more than expected 1.8%, as against the consensus of an increase of 1.5%. Orders for the prior month were revised lower to reflect a 3.5% decline.
US light crude oil for May delivery grew by 8.8% to settle at $52.63 a barrel on the New York Mercantile Exchange. The crude prices contracts rose throughout the session and managed to end above the psychological $50 level.
Gold futures for the month of June delivery finished the session at $908.90 per ounce, down by 2%. June gold futures contracts hit session lows of $896.10 per ounce in the early trade.
The Dow Jones Industrial Average (DJIA) surged by 216.48 points to close at 7,978.08. The NASDAQ Composite (RIXF) index increased by 51.03 points to close at 1,602.63 and the S&P 500 (SPX) grew by 23.30 points to close at 834.38.
Further the stocks rose to their highest level in early trading after the G20 leaders pledged an additional $1.1 trillion in financing to the International Monetary Fund in order to tackle the global financial crisis and also declared a crackdown on tax havens and hedge funds.
Moreover some optimism spread followed news that the ECB cut its target interest rate by 25 basis points to 1.25% and also hinted of more rate cuts in future.
On the economic front, the weekly jobless claims came in worse than expected. Initial jobless claims for the week ending March 28 jumped 12,000 to 669,000 as against the expectation of 650,000. Continuing claims exceeded expectations as well as it stood at 5.73 million, while economists expected 5.59 million claims.
The factory orders for the month of February mounted by more than expected 1.8%, as against the consensus of an increase of 1.5%. Orders for the prior month were revised lower to reflect a 3.5% decline.
US light crude oil for May delivery grew by 8.8% to settle at $52.63 a barrel on the New York Mercantile Exchange. The crude prices contracts rose throughout the session and managed to end above the psychological $50 level.
Gold futures for the month of June delivery finished the session at $908.90 per ounce, down by 2%. June gold futures contracts hit session lows of $896.10 per ounce in the early trade.
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