FX.co ★ The US stock market outlook for 27/05/2010

The US trading session on Thursday ended with a sharp uprise of stock indices. The fears about the spread of the debt crisis in the euro area were weakened and the investors were again buying more risky stocks, as a result the technological sector companies’ papers gained. Dow Jones Industrial Average added 284,54 points or 2,85% to 10258,99 points. Nasdaq Composite increased by 81,80% or by 3,73% to 2277,68 points. Standard & Poor's 500 grew by 35,11 points or by 3,29% to 1103,06 points passing over the key level of 1090 points. The investors started to show interest to buying risky assets after the Chinese government had disproved the information according to which China considers a possibility of selling its European debt securities. Intel rates upmoved by $1,06 or by 5,1% to $21,76.
Microsoft ascended by $0.99 or by 4% to $26,00 after the FBR Capital improved its ratings to “above risk”. This increase has partially leveled the Wednesday losses when Apple advanced Microsoft by the market capitalization. The financial sector has profited because of the weakening of the fears about debt problems in Europe. The authorities of Spain approved the reduction of the budget expenses which helped in stabilizing the investors’ assurance in that the spread of debt problems can be curbed.
Bank of America grew by $0.71 or by 4,6% to $16,18, J.P. Morgan ratings were up by $1,64 or by 4.2% to $40,42. American Express increased by $2,16 or by 5,7% to $40,33 when Sandler O'Neill increased the rating up to “buy” from “hold”. Nasdaq Composite uprose by 81,80 points or by 3,73% to 2277,68 points. Standard & Poor's 500 grew by 35,11 points or by 3,29% to 1103,06 points having exceeded the key level of 1090 points. The rate growth in the energetic sector was supported by the uprise of oil prices which rallied by more than 4%. The session on Thursday ended for the oil futures above $74 per barrel, having demonstrated the highest intraday growth in percentage points since September 2009.