Wall Street Rallies on Euro Deal

    Trader Gregory Rowe and specialist Jennifer Klesaris work on the floor of the New York Stock Exchange Thursday, Oct. 27, 2011. (AP Photo/Richard Drew)

    Richard Drew / AP Photo

    Relief over the European debt deal caused Wall Street to enjoy a rally Wednesday, with the Dow Jones industrial average closing up nearly 3 percent and the S&P 500 index ending about 3.4 percent higher. The S&P’s gains meant the stock index is on track to have its best monthly percentage increase since January 1987. Meanwhile, in Europe, London’s FTSE 100 closed up 160 points, or 2.9 percent, a three-month high. Analysts said they saw Europe’s deal as helping to remove the risk to the U.S. economy and the rest of the global financial system. Analyst Keith Wirtz said the worldwide rally came because traders are taking “comfort in the belief there should be no recession on the horizon.”

    Read it at Reuters