Week in Review 30/9/2011

Date of publish: 30/9/2011

For Financial week: 26-30/9/2011

Written by Matthew McCreath

Week in Review 

   

   Stocks jumped and blue chips staged their biggest percentage gain in more than a month, as investors bet that efforts will be taken to stem Europe's sovereign-debt crisis. The Dow climbed 272 points, to 11044, clawing back more than one-third of last week's losses. The S&P 500-stock index gained 27 points, to 1163. The Nasdaq Composite was the laggard, gaining 33 points, to 2517, after spending much of the day in negative territory.  Stocks closed near session highs following reports that a "special purpose vehicle" to help stem Europe's debt contagion was in advanced development. Those reports followed an ECB official's endorsement of a more aggressive bailout plan and another official's remark that the ECB can't rule out an interest-rate cut.

   A sharp afternoon downdraft prompted U.S. stocks to erase more than half of their earlier gains, as investors fretted over a report that highlighted a potential split in the euro zone over the terms of Greece's second bailout. The Dow finished the session up 147 points, to 11191, after surging as much as 325 points. The S&P 500-stock index gained 12 points, to 1175. The Nasdaq Composite closed up 30 points, to 2547.

   U.S. stocks snapped a three-day winning streak, sinking as a drop in commodities prices added to concerns about policymakers' ability to contain Europe's debt crisis. The Dow fell 180 points, to 11011. The S&P 500-stock index lost 24 points, at 1151, while the Nasdaq Composite shed 55 points, to 2492. The moves came on a day when Finland voted to approve changes to the euro-zone bailout fund, after leaders raised concerns earlier this month that they would demand collateral as a precondition for participation. Germany votes on the changes Thursday. The changes need to be approved by all 17 euro-zone members to take effect.

   Stocks erased a strong rally but still finished off their worst levels Thursday in thin, choppy trading as the Dow and S&P rebounded from afternoon lows. Stocks started the session sharply higher following several robust economic news and after Germany's parliament passed a crucial vote which approved the reforms to the EFSF. The Dow gained 143 points, or 1.30 percent, to finish at 11,154, rebounding from its afternoon lows. The S&P 500 rose 9 points, or 0.81 percent, to end at 1,160. The Nasdaq slid 11 points, or 0.43 percent, to close at 2,481.

   Stocks declined, setting the market up to close the worst quarter in years on a down note, with glum overseas economic reports weighing on investor sentiment. The Dow shed 156 points, to 10999, in Friday afternoon trading. The Dow has lost 10% for the quarter as of Thursday's close, the biggest percentage decline since the first quarter of 2009 and the worst point drop since the nadir of the financial crisis in late 2008. The S&P 500-stock index shed 18 points, to 1143, while the Nasdaq Composite slid 44 points, to 2438. Those two indexes also are closing out their worst quarterly performance in years.