GCG Weekly Market Update – July 20, 2015
Stocks surged in an action-packed week, giving the NASDAQ two record closes in a row. For the week, the S&P 500 gained 2.41%, the Dow rose 1.84%, and the NASDAQ soared 4.25%. (1)
Investors around the world breathed a sigh of relief when EU negotiators finally reached a deal on Greece after weeks of brinksmanship. However, all is not won yet since the deal must pass several Eurozone parliaments next and Greece must apply for a new International Monetary Fund program. (2) But, the European Central Bank approved more emergency relief and Greek banks are due to reopen this week. (3) Will this new bailout resolve all of Greece’s issues? Certainly not. In fact, we may see new acts in the Greek drama if a snap general election is called this fall or if the IMF refuses to support the deal. (4) However, Europe avoided a painful Greek exit and Greece has stepped back from the brink (for now).