The thought of American and European central banks joining China to boost the economy has triggered the best weekly gain for the Standard & Poor’s 500 Index since last year.
In fact, all ten of the index’s stock groups rose this week, adding almost 5%. Though Facebook continued its three-week slide, Chesapeake Energy Corp. and Home Depot were two companies who reported significant gains.
Altogether, the S&P 500 climbed 3.7% to 1,325.66, a large improvement to last week’s 3% slump. The Dow Jones Industrial Average also rose to 12,554.20.
“The optimism comes from the belief that there is going to be some kind of coordinated activity from central banks,” said Mariner Wealth Advisors’ Bill Greiner.
“The question in my mind is how close to the edge do the world of investors have to move before the central banks start to move in the direction that they need to,” he added.