U.S. Stock Prices Make A U-Turn

U.S. stock prices surged on Monday amid reports that European leaders have moved to resolve the euro zone debt crisis and better than expected U.S. holiday sales.

The Dow Jones Industrial Average surged to 11,523.01 after rising by 2.6% or 291.23 points. The blue chip index was at its highest level since Oct 27 and indicated a recovery from previous week when it dropped by 4.8%. The gains were led by aluminum conglomerate Alcoa Inc. that rose by as much as 5.7%.

Taking U turn after seven consecutive losing sessions, the S&P 500 Index increased by 2.9% or 33.88 points to close at 1,192.55. It was the index’s best day after Oct. 27. Energy and natural resource companies sector was the leader of gainers.

Many support levels were breached last week. First new resistance level on the S&P 500 is expected from 1,206 to 1,216 and the second resistance at 1,250. The Nasdaq Composite Index increased by 3.5% or 85.83 points to close at 2,527.34, the highest gain since Aug. 23. On the New York Stock Exchange, the ratio of gainers to losers was 5 to 1. NYSE Composite volume touched 3.8 billion mark.

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Leo Pierson

About Leo Pierson

Former partner in a real estate management firm, Leo, has been active in the market for the last 8 years. Ex-blogger on penny stocks, now focused on long term growth stocks, Leo provides valuable market snapshots each day as part of our editorial team.

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