Concern about the mounting European debt crisis spurred selling this morning and caused the U.S. stock market to finish down slightly for the day.
The Dow Jones Industrials, the S&P 500 and NASDAQ all regained some ground later today, as Apple Inc. (AAPL) jumped more than 2% to become the world’s most valuable stock ever. At the close of trading today, the Dow Jones Industrial Average finished down .03% to 13,271.64, while the S&P 500 ended at $1418.13, down 0.20%, and the NASDAQ dipped 0.01% to 376.21.
Concerns about whether Greece may not be able to meet its financial bailout terms and similar debt worries in countries like Spain and Ireland put the continent’s problems at the forefront today. In addition, the European Central Bank’s bond-buying proposal to aid struggling countries recently has been criticized by German banking authorities. The Germans are concerned about taking on the role of primary lender.
In domestic news, Apple Inc, (AAPL) has become the most valuable U.S. company in history today. That achievement may have aided the U.S. market’s recovery today. AAPL closed at a record $665.15 per share.
The S&P 500 has risen for the past six consecutive weeks and today’s resilience shows the rally may not be done yet. That six-week winning streak is the index’s largest run since January 2011. The index has risen 11% so far this year and is showing significant signs of improvement, amid other unstable market indicators.
What does this minor dip mean for the savvy independent investor? Despite today’s early-morning setback, 80% of the S&P 500’s stocks still are trading above their 50-day moving averages, with 90% of stocks in the technology and industrials sectors continuing to trade above their 50-day moving averages.
With central bankers in Europe and the United States openly discussing taking steps to keep easy-money policies going on both sides of the Atlantic Ocean, the market’s rally likely has further to go.
