Wall Street Rises As Uncertainty Clears
US stocks have risen today, with major indexes hitting session highs and erasing losses from this past week, buoyed by news that Russia was ending military drills near the Ukrainian border that the US had labeled as being provocative.
By Paolo Palazzi-Xirinachs
Friday, August 8, 2014 - 00:00
As of 2:45 EDT in New York the S&P 500 has risen 0.95% and, more importantly, climbed above its 100-day moving average - a technical support level that it has been hovering near for the past several days. The Dow Jones was up 153.45 points, or 0.94% to 16,521.72, and the Nasdaq Composite added 31.80 points, or 0.73% to 4,366.77.
The markets had dropped in post-market futures trading overnight on worries over the implications of a US air strike on Iraq. That came amid a backdrop of retaliatory trade bans by Russia on US and European food imports, which posed concerns especially for Europe's fragile and sputtering economic recovery.
Russia's Defense Ministry said today it had finished military exercises in southern Russia which the United States had criticized as a provocative step amid the Ukraine crisis. The markets hate uncertainty, so with news of the de-escalation in Russia, and also with the Obama administration explaining exactly what the goals are in Iraq, it's helped clear up some murkiness in the markets. The US had earlier carried out air strikes targeting Islamic State fighters marching on Iraq's Kurdish capital earlier Friday. The strikes were the first authorized on Iraq since President Barack Obama pulled American troops out in 2011.
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