The Dow Jones index broke through the 15,000 point threshold for the first time ever on Tuesday.
One of the German government's closest economic advisers has warned the euro has a "limited chance of survival" and may only last for another five years.
Under Madame Lagarde, the IMF is having some second thoughts about cutting deficits.
Germany's second largest bank Commerzbank slid as much as 14% today after it said it will sell €2.5bn to repay the government and insurer Allianz amid a company restructure.