The Dow Jones industrial average passed 13,000 mark during trading on Tuesday, first time since May 2008 due to agreement on Greek bailout and reports of hefty corporate earnings. On March 9, 2009 the Dow was at 6,547 nearly half of 13,000. It was at its highest level of 14,164, on Oct. 9, 2007.
During last summer, the Dow Jones industrial average shed 2,000 points in three horrifying weeks. During this period the European debt crisis was intense and America was battling federal borrowing restrictions. S&P lowered the U.S. credit rating. In the United States a second recession was a real danger. However, the economy grew quicker quarter after quarter during last year and job market improved substantially.
Though higher gasoline prices are main concerns. U.S. economy is expected to grow during the rest of the year. On average price of gasoline is 40 cents more as compared to last year due to Iran’s nuclear program. Iran has already stopped oil supplies to France and Britain and has threatened to do the same to other European nations.
The price of oil was highest since last May at $106.25. However, investors appeared confident and shifted funds from safer investments like government bonds to risky stock market.
