US stocks rallied yesterday as investor worry was eased after China refuted a report that it was reviewing its Eurozone bond holdings due to the region’s debt crisis.
Yesterday’s gains marked the largest advance for the S&P 500 on a percentage basis since 10 May, although volume was below average.
China’s denial was enough of a catalyst to entice buyers into the volatile equity market, which fell sharply from April highs.
The Dow Jones industrial average gained 284.54 points, or 2.85 per cent, to 10,258.99. The Standard & Poor’s 500 Index advanced 35.11 points, or 3.29 per cent, to 1,103.06. The Nasdaq Composite Index jumped 81.80 points, or 3.73 per cent, to 2,277.68.
The S&P 500 closed above the 1,090 level it has failed to breach in the last week, which is seen as technical resistance.
A late flurry of activity pushed volume up to 9.88bn shares traded on the New York Stock Exchange, the American Stock Exchange and Nasdaq, slightly above last year.