Euphoria over an agreement on how to rescue Europe’s crippled banks sent stocks soaring yesterday as Wall Street closed out the first half of the year.
Despite a 2.5 percent decline in the second quarter, the Standard & Poor’s 500 index, which had its best day of the year yesterday, finished the half ahead 8.3 percent.
Analysts said yesterday’s rally got going after 17 European nations snapped a long stalemate on ways to prop up debt-laden banks and nearly insolvent sovereign governments, a crisis that’s spooked global markets for more than a year.
While the stock boost was good news for portfolios, it is certain to bring back higher gas-pump prices by the July 4 holiday, due to renewed demand for oil.
Oil surged $7.27 a barrel here, or 9.4 percent, to $84.96. Gas pump prices are expected to rise by next week.