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Wall Street surges on EU rescue package
(Xinhua)
Updated: 2010-05-11 05:09
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NEW YORK -- Wall Street surged on Monday after European leaders agreed to provide a huge rescue package of nearly 1 trillion U.S. dollars to aid the debt-laden countries, giving investors great relief.
After long hours of discussion, finance ministers from the European Union agreed on a deal that would provide 560 billion dollars in new loans and 76 billion dollars under an existing lending program to those countries facing financial meltdown.
In addition, the International Monetary Fund was also ready to provide 321 billions dollars to help prevent the Greek debt crisis from spreading to other European countries and derailing the global economic recovery.
Meanwhile, the European Central Bank confirmed it will buy bonds in the secondary market, which it denied just a few days ago, in order to ensure market stability and U.S. Federal Reserve, together with other world's leading central banks also announced a joint intervention to make more dollars available for interbank lending.
The Dow Jones industrial average surged 404.71, or 3.90 percent, to 10,785.14. The Standard & Poor's 500 index soared 48.85, or 4. 40 percent, to 1,159.73 and the Nasdaq jumped 109.03, or 4.81 percent, to 2,374.67.
