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Euro Loan Package Pushes U.S. Stocks Sharply Higher

It's only late morning, there are five or so hours to go in the trading day and we learned last week that things can go bad very quickly if the computers decide they should.

Still, even with those caveats, it's worth reporting that:

"U.S. stocks rallied (today), with the Standard & Poor's 500 Index gaining the most intraday since April 2009, after European policy makers unveiled loan package valued at almost $1 trillion to contain a sovereign-debt crisis." (Bloomberg News)

Or, as The Wall Street Journal puts it:

"U.S. stocks surged as the market opened, and key indexes leapt back into the black for the year after the European Union agreed to a nearly $1 trillion package to help stabilize a debt crisis threatening to widen within Europe. The Dow Jones Industrial Average climbed 404 points, or 3.9%, to 10784 in early trading, on pace for its biggest one-day gain of the year."

"The market is breathing a huge sigh of relief that the EU has taken aggressive steps to contain the EU crisis in the weaker states," Alan Gayle, senior investment strategist at RidgeWorth Investments, tells the Associated Press.

Planet Money explains why markets do what they do here.

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