Market Recap: Markets Rally on EU Resolution Expectations, US Inks Free Trade Deals

Markets closed up on Wall Street today: Dow +2.31%, S&P +1.88%, Nasdaq +1.49%, Oil +1.7%, Gold +2.49%.

On the commodities front, Oil (NYSE:USO) jumped up to $87.53 a barrel. Precious metals also caught a bid as Gold (AMEX:GLD) leaped to $1,652 an ounce while Silver (AMEX:SLV) spiked 3.35% to $31.28.

Hot Feature: This Famous Hedge Fund Manager Hates These 6 Stocks.

Today’s markets up down because:

1) EU … Again. The bipolar action continues. Apparently, investors and traders now believe the EU will have some resolution in the next week or two. Thus, people are repricing the market to match expectations that the EU does not implode.

2) DJIA. The Dow Jones Industrials were on fire today. 28 of the 30 components were in the green — only General Electric (NYSE:GE) and Bank of America (NYSE:BAC) were in the red. The moves were heavily driven by solid earnings from Honeywell (NYSE:HON), McDonald’s (NYSE:MCD), and Verizon (NYSE:VZ).

3) Precious Metals. After a four-day losing streak, gold (AMEX:GLD) prices finally broke to the upside as the US dollar (NYSE:UDN) weakened. Silver also caught a nice bid as investors are salivating over what’s perceived to be a huge EU bailout sure to further deteriorate the value of paper currencies.

BONUS: 3 Core Focuses for the European Bailout.