US stock markets reached new high on Monday (November 9, 2009) with Dow increasing by 204 points to reach 2009 high. Worldwide also stock markets registered gain. The markets were helped by G-20 countries announcement to continue with economic stimulus to revive the economies .With this announcement stocks gained as investors became more confident that low interest rates will be maintained to revive the global economy.

On Monday Dow increased by 204 points or 2 percent, to close at 10,226.94 which is its highest level in 13 months. Other indices like S&P and Nasdaq composite also registered gains. Standard & Poor’s 500 index increased by 23.78 points or 2.2 percent  to 1,093.08. The Nasdaq composite index increased by 41.62 points or 2 percent to close at 2,154.06. The Russell 2000 index of smaller companies increased by 11.96 points or 2.1 percent to close at 592.31. Year to date Dow has increased by about 15% and the Nasdaq composite is up by 35%. Sectorally Financial, Energy and the commodity related stocks gained the most.

The news that the G-20 countries will continue with their economic stimulus measures provided an indication to investors that the rate will continue to remain low. The demand for dollar was further decreased with the G-20 news. Investors across the world have been looking at trends in dollar while making investment decisions. With the dollar weaker than other currency investors are using dollar to finance purchase of investment in other countries. This makes dollar loose even more value. Some analyst feel that the stocks and other investments could suffer big losses if the dollar gains.

Even the news that the unemployment rate has crossed 10 percent didn’t deter the investors. The unemployment rate increased to 10.2 percent reaching the double digit for the first time in 26 years. Theoretically stock markets react adversely to high unemployment rate cause consumers either unemployed or worried about losing their jobs are not likely to spend freely.

The World markets also shared the positive sentiment. Britain’s FTSE 100 increased by 1.8 percent, Germany’s DAX index increased by 2.4 percent, and France’s CAC-40 increased by 2.1 percent.

Market Summary

US Market

World Market