US stocks rose for a third day in a row yesterday as developing Eurozone plans to backstop European banks gave investors hope the threat of a financial crisis was waning.
Bank shares led gains on Wall Street as the EU planned to recapitalise banks and the European Central Bank said it was ready to buy bonds to provide longer-term cheap money for European lenders in need of funding.
The S&P Financial Sector gained 3.2 per cent and has risen 8.8 per cent in the past three days, though it remains one of the weakest sectors this year.
The Dow Jones industrial average rose 1.68 per cent to 11,123.33. The S&P 500 gained 1.83 per cent to 1,164.97. The Nasdaq Composite gained 1.88 per cent, to 2,506.82.
“We’re popping back up again, based on the idea they [European officials] will reach an agreement and rescue us,” said Doug Roberts of Channel Capital Research.