stock market

Stock market hits new high after Greece gets loan extension

NEW YORK — A deal giving Greece more time to repay its debts swung the U.S. stock market to a record high Friday.

While expected, the deal between the struggling country and its European creditors left investors relieved. Any failure to reach an accord could have sent tremors through markets at a time when Europe is trying to revive its regional economy.

“It’s good this didn’t go down to the wire to get resolved,” said Paul Christopher, head of international strategy at Wells Fargo.

Stocks started off the day solidly lower. The Dow Jones industrial average fell as much as 107 points. But as rumors and news came out that Greece and its creditors were close to a deal, the market climbed steadily higher.

The Dow finished up 154.67 points, or 0.9 percent, to 18,140.44. The Standard & Poor’s 500 index climbed 12.85 points, or 0.6 percent, to 2,110.30, and the Nasdaq composite rose 31.27 points, or 0.6 percent, to 4,955.97. The Dow closed at a record high, surpassing its record close Dec. 26. The S&P 500 also closed at record high.

The Nasdaq, which has yet to reclaim its record high from the dot-com era, is now within 93 points of that March 2000 peak.

“You don’t have that uncertainty hanging over the market as we enter the end of the week,” Bill Schultz, who oversees $ 1.2 billion as chief investment officer at McQueen, Ball & Associates in Bethlehem, Pa., told Bloomberg News. “It’s a removal of an obstacle in the way of growth and earnings for companies.”

This is the first time the Dow has closed at a record this year. It’s been 56 days since the Dow’s last all-time high, reached on Dec. 26. When the S&P 500 reached its first record of 2015 last week, it had been 46 days since the previous one.

The Dow climbed to closing records on 38 days in 2014 and on 52 occasions in 2013 as the index recovered from the financial crisis to top its previous high from October 2007 for the first time.

The S&P 500 is up 0.6 percent for the holiday-shortened week. It has gained 2.5 percent this year, trailing all but three of the 24 developed markets tracked by Bloomberg.

In Brussels, the deal reached between the European Union and Greece’s recently elected government would extend the country’s repayment plan by four months.

In energy markets, the price of oil fell Friday after a closely watched count of drilling rigs declined less than expected. That could mean crude supplies will remain ample.

Benchmark U.S. crude fell 82 cents to close at $ 50.34 a barrel in New York on the last day of trading for the March contract.

Bloomberg News contributed to this report.

stock market – Bing News

Click to comment
Loading Facebook Comments ...

Leave a Reply

Your email address will not be published. Required fields are marked *

Most Popular

To Top