Hopes of euro bailout lift stocks as Facebook dives
US stocks rose yesterday as signs Greece would stay in the Eurozone were enough to spark buying in what has been a weak month for equities, while Facebook plumbed new lows on high volume.
Wall Street has swung back and forth on shifting signals coming out of Europe. More than three issues rose for every declining one on the New York Stock Exchange, supported by weekend polls favouring pro-bailout parties in the upcoming Greek election.
The S&P 500 is down nearly five per cent in May, so far its worst monthly performance since September, with traders backing away as the Eurozone crisis shows signs of worsening.
The market could remain on edge as the 17 June elections draw closer, as a rejection of the bailout plan could trigger a Greek exit from the Eurozone and badly hurt the bloc’s credit and economies. Worries over Spain’s banking system added to uncertainty.
Facebook hit a new low of $28.65, down more than 10 per cent, before closing off 9.6 per cent at $28.84.
The Dow Jones industrial average rose 125.86 points, or 1.01 per cent, to 12,580.69. The S&P 500 Index added 14.60 points, or 1.11 per cent, to 1,332.42. The Nasdaq Composite gained 33.46 points, or 1.18 per cent, to 2,870.99.