World Markets Rebounds On EU Rescue Pack; Dow Surges 3.9%

Worldwide Collective Sighs Of Relief; Markets Rebound

After spending four consecutive sessions mired in red ink, stocks bounced back amid upbeat news from across the pond today. Boosting the bulls was a joint announcement from the European Union (EU) and the International Monetary Fund (IMF), which agreed on a near $1 trillion rescue package to aid debt-riddled nations across the euro zone. Furthermore, the Federal Reserve pledged to ship U.S. dollars to a plethora of foreign banks, which can then lend the greenbacks to banks in their respective countries. As the Street let out a collective sigh of relief, the CBOE Market Volatility Index (VIX) – often referred to as the "fear barometer" – pulled back from fresh highs, reflecting the waning concerns about contagious debt throughout Europe.

After skyrocketing as high as 10,835.17 earlier in the session, the Dow Jones Industrial Average (DJIA – 10,785.14) settled on an impressive gain of 404.7 points, or 3.9%. In fact, all of the Dow's 30 blue chips finished in the black, with Caterpillar (CAT) and Bank of America Corp. (BAC) leading the pack. However, though today marks the loftiest single-session point increase since March 2009, the blue-chip barometer is still staring up at both its 10-day and 10-week moving averages.
Likewise, the S&P 500 Index (SPX – 1,159.73) advanced 48.9 points, or 4.4%, after touching an intraday peak of 1,163.85. However, like the Dow, the SPX remains south of its formerly supportive 10-day and 10-week trendlines.

Finally, the Nasdaq Composite (COMP – 2,374.67) fared the best of the major indexes, soaring 109 points, or 4.8%. But, while the tech-rich index scored its first triple-digit gain since October 2008, the COMP has yet to topple its own 10-week trendline, lingering in the round-number 2,400 region.

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