The Dow rose 146 points to 11190 amid hopes that Europe was moving closer to resolving its debt problems
Stocks rallied Monday amid hopes for a fix to Europe's debt problems. The Dow went up 272 points to close at 11043, making up nearly a third of last week's losses.
Stock markets have been swinging wildly of late. Even though corporate earnings have shown strength over the past year and not all economic indicators have been gloomy, investors are on edge. Uncertainty looms on several fronts – from concerns about the basic health of the economy to doubts about fiscal policies in the United States and Europe. Here's a look at the forces weighing on investors' outlook:
Prime Minister Papandreou canceled his US trip and hinted at further austerity measures after Europe's 'troika' of experts expressed doubt about the Greek government's plans to avoid default.
At a meeting of European finance ministers in Poland, leaders largely rejected proposals from Treasury Secretary Timothy Geithner on how to rescue the ailing eurozone.
Italy is under pressure from the European Central Bank to adopt austerity measures, but Italians suffering financially resent the government's austerity plan and tax increases.
Five central banks take steps to funnel cash to eurozone commercial banks by year's end. Their aim? Avert a funding freeze – and perhaps another global banking crisis tied to bad debt.
The Dow rose 186.45 points to close at 11,433.18. The S&P rose 20.43 points to 1,209.11, and the Nasdaq rose 34.53 points to 2,607.07.