NEW YORK: US stocks rebounded Monday from their worst week of the year after G8 leaders voiced support for debt-stricken Greece to remain in the eurozone and economic growth efforts.
In the first 45 minutes of trade, the Dow Jones Industrial Average was up 48.78 points, or 0.39%, to 12,418.16.
The S&P 500-stock index climbed 6.04 (0.47%) to 1,301.26, while the tech-rich Nasdaq added 14.70 (0.53%) at 2,793.49.
Wall Street stocks were “supported by a relatively calm eurozone crisis front following a weekend meeting of G8 world leaders that urged Greece to remain a member of the eurozone and that economic growth policies accompany austerity plans,” Charles Schwab & Co analysts said.
Analysts noted that the Group of Eight leaders backed growth measures at the US-hosted summit but did not offer any specific details.
“What policies produce growth over the long term appears not to be a matter for discussion,” said Dick Green at Briefing.com.
“For now, there are no decisions as to what action will be taken.”
Facebook shares plunged more than 11% below the initial public offering price of $38, after fizzling in their debut Friday. The shares were changing hands at $34.05.
On Friday, US stocks slumped after Facebook’s IPO disappointed, leaving the Nasdaq down 1.2%. In their sixth straight day of losses, the Dow dropped 0.6% and the S&P 500 shed 0.7%.
There was no major economic indicator on the calendar.
Aerospace giant Boeing led the blue-chip Dow higher, gaining 2.3%.
Asset management firm BlackRock dropped 1.5 % after British bank Barclays said it would seek to sell its $6.1 billion stake.
Yahoo! rose 0.3%. The struggling Internet pioneer announced Sunday it would sell its stake in Alibaba, China’s top e-commerce player, for at least $7.1 billion.
Lowe’s Companies, the nation’s second-largest home-improvement retailer, plunged 10.5% after reporting better-than-expected profit in the first quarter but lowering its full-year forecast.
The bond market fell. The yield on the 10-year Treasury rose to 1.74% from 1.70% Friday, while the 30-year fell to 2.81% from 2.79%.
Bond prices and yields move in opposite directions.
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