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Stocks Soar Due to $1 Trillion Rescue Fund
Monday, May 10, 2010
Stock futures are soaring today, following an announcement from the European Union and the International Monetary Fund that they would provide nearly $1 trillion to help European nations, including Greece, dig out of their debt crises. Governments which use the euro said they would also contribute to the rescue fund.
The Associated Press reports that officials made the announcement today in the hopes that its $957 billion dollar package would regain lost credibility with investors. Under Monday's three-year plan, the European Commission will make €60 billion ($75 billion) available while countries from the 16-nation eurozone would promise backing for €440 billion ($570 billion). The IMF would contribute an additional sum of at least half €250 billion ($320 billion).
"Europe has unequivocally said, 'We will defend the euro's integrity,'" Oliver Pursche, of Gary Goldberg Financial Services in Suffern, New York, told The AP.
Stocks spiked up and down towards the end of last week, amid fears of Europe's debt, and a possible technical mistake made by a Citigroup trader. But today, the Dow Jones Industrial Average rose about 400 points, and the Dow and broader stock indexes rose more than 3 percent.