Investors Cheer One of the Best Weeks for Stocks and Markets
After the week started with good news from Black Friday and Cyber Monday, it just kept coming and by Friday, Wall Street had seen its best week since 2009. Stocks jumped more than seven percent with traders feeling hopeful that global policy action would help combat Europe’s debt crisis.
For the week, the S&P 500 (NYSEARCA:SPY) rose 7.4 percent, representing its best performance since March 13, 2009. This has been the beginning for the current bull market and the broad-market index has almost doubled after dropping to its March 6, 2009 low.
However, for the year, this index is still down by 1.1 percent.
The Dow (NYSEARCA:DIA) grabbed 788 points last week (seven percent), representing its second-greatest weekly point gain in the index’s history. This gain represents the top percentage performance last seen in July 2009. All 30 Dow components closed higher.
The Nasdaq (NASDAQ:QQQ) jumped 7.59 percent for the week.
Adding to the week’s news was November’s nonfarm payrolls 120,000 rise. This was slightly lower than the 122,000 forecast but the unemployment rate dropped to 8.6 percent from October’s 9 percent.
The November number is the lowest one since March 2009.
European news helped close the good week after French President Nicolas Sarkozy proposed tougher fiscal integration for the euro zone and formation of a European Monetary Fund. The new body would have power to make decisions from a majority vote versus a unanimous ones; it is intended to move the rescue aid along sooner.
Also on Thursday, European Central Bank Mario Draghi suggested that the central bank could take in European bond markets with countries then making more definitive steps to deter the sovereign debt. Draghi didn’t provide any specifics.