Stocks closed way off session lows on Thursday on news Greece agreed to a five-year austerity plan, but lingering economic uncertainty ultimately drove the S&P 500 lower, keeping a downward trend in place.
Nearly 30 percent of the day's volume traded in the last hour. That coincided with the market's turnaround and the news out of Greece, which set the stage for a resolution to Athens' credit problems that have hurt investor sentiment around the globe.
"The agreement on the austerity plan, that's really what got the market going," said Paul Hickey, co-founder of Bespoke Investment Group in Harrison, New York.
The question now remains whether the late-day surge is a precursor to renewed buying interest or if it was just an interruption before selling returns in coming days.
"We're going headline to headline, which is typical of a market pullback," Hickey said. "There's not a whole lot of tangible evidence for investors to move on right now."
The S&P 500 came within less than a half point of its 200-day moving average -- a line the bulls have been able to hold since last September. Technical analysts monitor that level as an indication of the long-term trend, and a consistent close below it could trigger more selling.
"It's definitely positive and encourages people," Hickey said.
Sources with knowledge of the talks told Reuters that Greece has won the consent of a team of European Union and International Monetary Fund inspectors for its new five-year austerity plan after committing to an additional round of tax increases and spending cuts.
The Dow Jones industrial average (DJI:^DJI - News) dropped 59.67 points, or 0.49 percent, to end at 12,050. The Standard & Poor's 500 (^SPX - News) lost 3.64 points, or 0.28 percent, to 1,283.50. But the Nasdaq Composite (Nasdaq:^IXIC - News) gained 17.56 points, or 0.66 percent, to close at 2,686.75.
Dow Jones Industrial Average
(DJI: ^DJI )| Index Value: | 12,050.00 |
|---|---|
| Trade Time: | 4:06PM EDT |
| Change: |  59.67 (0.49%) |
| Prev Close: | 12,109.67 |
|---|---|
| Open: | 12,108.35 |
| Day's Range: | 11,874.94 -12,108.73 |
| 52wk Range: | 9,596.04 -12,928.50 |
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