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Wall Street rebound continues

Is the tumult on global stock markets ending?
Wall street flagEnlarge
A large American flag draped across the front of the New York Stock Exchange August 5, 2011. (Stan Honda/AFP/Getty Images)

Last week was one of the most tumultuous ever on Wall Street, as major markets crashed, rallied, crashed and rallied amid ongoing worries about the U.S. economy, Europe's debt mess and other troubling developments.

So how's this week looking so far?

A lot less volatile.

The major markets all ended about 2 percent higher today, as investors focused their attention on some high-profile deals that helped propel stocks higher. 

Google's $12.5 billion acquisition of Motorola Mobility set the positive tone. But it was not alone in the deal-making today.

In Norway, offshore drilling contractor Transocean is buying Aker Drilling for $1.4 billion, and Time Warner is acquiring cable operator Insight Communications for $3 billion, Reuters reports.

Still, most analysts remain wary following last week's madness, and trading was very light on this third consecutive session of gains. Here's how Quincy Krosby, a market strategist for Prudential Financial, explained it to the New York Times:

“For now it is clear that in essence there is a relief in the market,” she said. “You can feel it.”

There's plenty of economic data to watch throughout the week, including the latest consumer inflation and jobless claims figures.

Stay tuned.

http://www.globalpost.com/dispatches/globalpost-blogs/macro/wall-street-rebound-continues