U.S. Stock Market gained almost 1% Monday, erasing most of the losses last week as investors bet that the Federal Reserve will renew its measures to support the U.S. economy after its policy meeting Monetary spread over two days.
The Dow Jones industrials gained 30 0.73% or 109.67 points to 15,179.85. The S & P-500, wider, took 12.31 points, or 0.76%, to 1639.04. The Nasdaq Composite Index was up 28.58 point his side (0.83%) to 3452.13.
Throughout the last week, because of worries to see the Fed begin to unravel its third round of quantitative easing (“QE3”), the S & P 500 benchmark fund managers, fell by 1 01%.
In closing this Monday, it is now only 1.8% of its record close of 1669.16 point established on May 21 after a bullish momentum – fueled mainly by QE3 – which allows the index still show an increase of about 15% since the beginning of the year.
Market participants seem to have absorbed the idea that the Fed will sooner or later reduce the amount of bond redemptions monthly active – currently $ 85 billion – but they are also of the opinion that this decision will not be announced Wednesday at the end of the monetary policy meeting of the institution.
For Fed officials, and primarily for its president Ben Bernanke will hold a press conference in the wake of the announcement of the monetary decision, it will mainly be to prepare market participants to schedule the inflection of his policy.
Meanwhile statements from the Fed, some players take a position on the stock market, as evidenced by the close of trade volume.
As for values, the title Liberty Global has lost 2.19% to $ 72.03 after a Financial Times article saying that the U.S. cable operator had submitted a bid of € 7.5 billion in his German counterpart Kabel Deutschland.
Action Advanced Micro Devices (AMD) rose 2.79% to $ 4.05 after Barron’s said that the outlook has improved for the second largest manufacturer of microprocessors for personal computers, including the number of business fell sharply last year.
The title Netflix jumped 7.12% to $ 229.3 following the announcement of a partnership with DreamWorks Animation will allow the specialist in online video will expand its range of original content. The action DreamWorks has increased its share of advanced 4.08% to $ 23.74.
The title Terex has however declined by 7.72% to $ 29.29 after the U.S. heavy equipment maker lowered its forecast for the current quarter and the full year 2013, highlighting the difficult market conditions in the construction and mining industry.