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Stocks up more than 1% in global rally

June 06, 2012|By Andrew Tangel
  • A trader on the floor of the New York Stock Exchange. Stocks rallied as the European Central Bank announced it would keep rates low to aid European banks.
A trader on the floor of the New York Stock Exchange. Stocks rallied as the… (Richard Drew / Associated…)

NEW YORK -- Stocks rallied on Wall Street following the European Central Bank's announcement that it would keep pumping cheap money into the continent's troubled banks.

Major U.S. indexes were up more than 1% shortly after the opening bell, following a global stock rally from Asia to Europe.

The Dow Jones industrial average gained 154 points, or 1.3%, to 12,283 in early trading.

The broader Standard & Poor's 500 index was up 17 points, or 1.4%, to 1,303.

The technology-focused Nasdaq rose 42 points, or 1.5%, to 2,820.

The ECB on Wednesday decided to keep interest rates at a record low of 1%, allowing troubled banks easy access to funds.

The Eurozone's debt crisis remains unresolved, however. The continent's most troubled economy, Greece, is set to hold elections June 17, and it is unclear whether the country will remain in the common monetary system.

In the United States, the Federal Reserve may be considering monetary solutions to shore up the economy, given continued distress in Europe and signs of a slowing American recovery, the Wall Street Journal reported.


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