Posted in: ArchiveMarket News
Published:
August 19, 2019 3:32 PM UTC

Dow Springs 250 Points as Investors Salivate Over New ECB Stimulus

By CCN Markets: The Dow and broader U.S. stock market extended their relief rally into the new trading week, as plunging consumer prices in the Eurozone bolstered expectations for a new round of quantitative easing from the European Central Bank (ECB). Dow Vaults Past 26,000;…

By CCN Markets: The Dow and broader U.S. stock market extended their relief rally into the new trading week, as plunging consumer prices in the Eurozone bolstered expectations for a new round of quantitative easing from the European Central Bank (ECB).

Dow Vaults Past 26,000; S&P 500, Nasdaq Follow

All of Wall Street’s major indexes traded sharply higher Monday, mirroring a strong pre-market for Dow futures. The Dow Jones Industrial Average jumped 249.78 points, or 1%, to 26,135.79.

Dow Jones Industrial Average climbs back above 26,000 following a 250 point surge. | Source: Yahoo Finance.

The broad S&P 500 Index of large-cap stocks advanced 1.2% to 2,923.65. All 11 primary sectors reported gains, led by energy.

The technology-focused Nasdaq Composite Index was back above 8,000, climbing 1.4% to 8,002.81.

Eurozone Consumer Prices Plunge in July

Plunging consumer prices likely pave the way for new rounds of ECB stimulus. | Source: REUTERS / Vincent Kessler

Eurozone consumer prices slid into negative territory last month, underscoring a weak economic recovery that should give central bankers enough scope to expand their stimulus program.

The consumer price index (CPI) fell 0.5% in July, slightly worse than expected, Eurostat reported Monday. Annual inflation was 1%, down from 1.3% in June.

Core consumer prices, which strip away volatile goods such as food and energy, plunged 0.6% during the month. The June CPI rate was revised sharply lower to reflect a decline of 0.6%. It was originally reported as a 0.4% increase.

ECB officials target annual inflation at just under 2%. The more the headline reading falls below that level, the more scope officials have in re-introducing new stimulus measures, such as quantitative easing.

Eurozone gross domestic product (GDP) expanded 0.2% in the second quarter, but Germany, its largest member state, contracted.

Click here for a real-time Dow Jones Industrial Average chart.

Last modified: January 10, 2020 3:29 PM UTC

Sam Bourgi @hsbourgi

Financial Editor of CCN.com, Sam Bourgi has spent the past nine years focused on economics, markets and cryptocurrencies. His work has been featured in and cited by some of the world's leading newscasts, including Barron's, CBOE, Yahoo Finance and Forbes. Sam is based in Ontario, Canada and can be contacted at sam.bourgi@ccn.com

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