Stocks Rally, Euro Beats Out Dollar
June 16, 2010
By Cindy Perman
Stocks rallied Tuesday as the euro gained against the dollar after a number of successful European debt auctions eased investor concerns about the euro zone’s solvency crisis. Techs and industrials led the advance.
The Dow Jones Industrial Average gained 213.88, or 2.1 percent, to close at 10,404.77. All 30 components were higher, led by Microsoft [MSFT 26.41 -0.1725 (-0.65%) ], American Express [AXP 41.5327 -0.0573 (-0.14%) ] and Boeing [BA 66.82 -0.66 (-0.98%) ].
The S&P 500 rose 2.4 percent to trade above its 200-day moving average of 1,108.26 for the first time since May. The tech-heavy Nasdaq gained 2.8 percent. And the CBOE volatility index, widely considered the best gauge of fear in the market, was near 25 at the closing bell.
The euro rose against the dollar as strong demand for government debt from several European countries offset worries about the debt crisis after Moody’s downgraded Greece’s credit rating to junk status on Monday.
“Most of the downtrend in the euro is done,” said Michael Cohn, chief investment strategist at Global Arena Investment Management. “We’ll probably have one more downdraft for the euro by August to around $1.15, but that’s it.”