After the stock market saw concern in the disappointing employment numbers of March that saw the Dow Jones go back down below 13,000, the Dow Jones Index is back above 13,000. The stocks rallied based on easing concerns over Europe and the latest housing data signaling more growth in construction. As of this moment, the index rose 198 points to just over 13,100. Trading at or above 13,000 is seen by some to be a psychological milestone because to many it shows the strengthening of the U.S. economy.
With regards to what sparked the rally, as written earlier, easing concerns over Europe and the growth in construction were the main culprints. Today, Germany’s latest economic sentiment index was higher than expected and Spanish bond yields rose above 6% for the first time in several months. These signals do not mean that Europe is not out of the woods yet, but there are positive signs. On the U.S. front, future construction permits rose to 747,000 in March compared to the 715,000 which signals a strengthening (albeit at a glacial pace) of the housing market.