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US Stocks Rebound Amid Optimism Over Greek Debt Crisis, Chinese Equities

Strategic Insights

— 1 min read

The US stock market witnessed a recovery on Thursday, with the S&P 500 Index surging 0.8% to 2,062.54, as investors became increasingly optimistic about the Greek debt crisis and the Chinese equity market. Key sectors such as raw materials, banks, and technology shares led the rebound, with Freeport-McMoran Inc. and Alcoa Inc. being major gainers. The Dow Jones Industrial Average also advanced, with a 147.11-point increase, while the Nasdaq Composite Index rose 1%.

Key Takeaways:

  • The S&P 500 Index climbed 0.8% to 2,062.54, marking a significant rebound from a four-month low.
  • Alcoa Inc. added 3.3% after its second-quarter sales beat estimates, while profit missed.
  • Freeport-McMoran Inc. rose 2.6% as copper rallied, marking its first gain after a seven-session stretch in which the miner lost 17%.
  • Walgreens Boots Alliance Inc. gained 4.2% after quarterly profits topped analysts' projections.
  • Citigroup Inc. and Bank of America Corp. increased by more than 1.5%.
  • Investors are starting to "trace out a bottom" and expect the market to turn higher in the next six months, according to Tom Wirth, senior investment officer for Chemung Canal Trust Co.
  • Greece has until midnight Thursday to present European leaders with a plan that includes spending cuts in exchange for fresh aid.

Statistics:

  • The S&P 500 is down 3.3% since its May record.
  • The International Monetary Fund cut its forecast for global growth this year, citing a weaker first quarter in the U.S. and warning of financial-market turbulence from China to Greece.
  • The VIXIndex fell 5.4% today to 18.60, despite rising 22% on Wednesday to its highest level since January.
  • Earnings for companies on the S&P 500 are projected to drop 6.5% in the second quarter.
  • Applications for unemployment benefits have been below 300,000 for 18 straight weeks, the longest stretch since 2000.

Sources:

  • Bloomberg
  • Reuters
  • CNBC
  • 2015 Global Data Point. All Rights Reserved. Provided by SyndiGate Media Inc. (Syndigate.info)

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