Tags: US | Wall | Street

Stocks Edge Higher After Bernanke Comments

Tuesday, 08 Jun 2010 10:02 AM

 

Share:
  Comment  |
   Contact Us  |
  Print  
|  A   A  
  Copy Shortlink

Stocks crept higher in early trading Tuesday following reassurances from Federal Reserve chairman Ben Bernanke that the domestic economy is recovering.

Bernanke's comments come after another late-day plunge Monday sent the Dow Jones industrial average to its lowest level in seven months.

Sharp swings over the final hour of trading have become the norm in the market over the past month as investors remain concerned about what news might come out of Europe overnight about ongoing debt problems. The end-of-day moves are similar to the ones seen in late 2008 during the height of the credit crisis when investors feared holding onto stocks overnight.

Bernanke said late Monday that he didn't expect the U.S. economy to fall back into a second recession, which is reassuring after Friday's disappointing employment report. It also stems some worries that a slowdown in Europe will spread across the Atlantic.

Bernanke said European leaders were taking the right steps to control rising deficits, but that wasn't enough to satisfy worried traders overseas. Major European indexes fell again Tuesday after Fitch Ratings warned that the United Kingdom is facing "formidable" fiscal challenges.

The euro is slightly higher, a day after touching a new four-year low. The euro rose to $1.1944.

The European Union hammered out new oversight measures aimed at heading off debt problems early among member countries. The EU's credibility has been called into question in recent months as countries like Greece, Spain, and Portugal grapple with ballooning debt and try to implement austerity measures.

That has drained confidence from the euro, the currency used by 16 European countries. The euro has dropped nearly 12 percent since the beginning of May.

Ongoing uncertainty about Europe's health and the pace of a domestic recovery sent investors back into some safe-haven alternatives to stocks and the euro. Gold rose to a record high of $1,254.50 an ounce early Tuesday, before pulling back to $1,243.70 an ounce. Gains early Tuesday in stocks and the euro pulled some investors away from gold after it touched a new high.

In early morning trading, the Dow rose 41.72, or 0.4 percent, to 9,858.59. The Standard & Poor's 500 index rose 5.53, or 0.5 percent, to 1,056.00, while the Nasdaq composite index rose 7.81, or 0.4 percent, to 2,181.71.

© Copyright 2014 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

Share:
  Comment  |
   Contact Us  |
  Print  
  Copy Shortlink
Around the Web
Join the Newsmax Community
Please review Community Guidelines before posting a comment.
>> Register to share your comments with the community.
>> Login if you are already a member.
blog comments powered by Disqus
 
Email:
Retype Email:
Country
Zip Code:
 
Hot Topics
Follow Newsmax
Like us
on Facebook
Follow us
on Twitter
Add us
on Google Plus
Around the Web
You May Also Like

Economist Peter Morici: Real Unemployment Rate Is at Least 18%

Tuesday, 29 Jul 2014 06:59 AM

The jobless rate may be down from its recession peak of 10 percent, but much of this results from adults, discouraged by . . .

Rick Perry: Obama Failed Constitutional Duty to Secure Border

Tuesday, 29 Jul 2014 06:30 AM

Texas Republican Gov. Rick Perry says the Obama administration has "failed" in its constitutional responsibility "to sec . . .

Undocumented Immigrants Picket White House to Demand Voice

Monday, 28 Jul 2014 21:58 PM

Undocumented immigrants picketed the White House on Monday, urging advocacy groups to refuse meetings with President Bar . . .

Most Commented

Newsmax, Moneynews, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, NewsmaxWorld, NewsmaxHealth, are trademarks of Newsmax Media, Inc.

 
NEWSMAX.COM
America's News Page
©  Newsmax Media, Inc.
All Rights Reserved