Stocks rise due in part to bank rally
Tuesday, May 08, 2012
Most U.S. stocks rose on May 7 due in part to a rally from the banks and investors who were watching the French and Greek elections carefully, according to Bloomberg.
U.S. stocks experienced their biggest weekly decline this year last week, but responded with the Standard and Poor's 500 Index showing banks gained 1.3 percent as Warren Buffett announced the nation's lenders are in sound financial shape, the news source stated.
“The perception is that European governments are not going to do anything stupid,” Paul Zemsky, the New York-based head of asset allocation for ING Investment Management, told the news source. “We’re talking about changes on the margin. We’re not talking about a wholesale change in fiscal policy. There was a big reaction to well telegraphed news. It’s good to see a bounce from the lows.”
However, consumer credit rates continue to weigh on the economy. According to a separate report from Bloomberg, consumer borrowing in the United States grew in March to its highest point in more than a decade due in part to growing demand for student loans and other educational financing and auto loans.
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