U.S. stocks blasted higher Tuesday afternoon, wiping away a week's worth of steep losses as bargain hunters flooded the market and investors expected for an interest-rate cut by the Federal Reserve on Wednesday. The market jumped despite of home prices record fall of 16.6 percent and a sharp drop in consumer confidence news early in the session.
The Dow Jones Industrial Average jumped 10.9percent or 889.59 points to settle at 9,065.36. That was its second-largest daily point gain ever, coming after the Dow’s 936 points jumped on Oct. 13.
Broader stock indexes also jumped Tuesday. The Standard & Poor's 500 index rose 91.59, or 10.79 percent, to 940.51, and the Nasdaq composite index rose 143.57, or 9.53 percent, to 1,649.47. The Russell 2000 index of smaller companies rose 34.15, or 7.62 percent, to 482.55.
The rally comes as stocks have been beaten down in the past six weeks over a freeze in the credit markets. Investors have worried about the economy's ability to avoid a severe downturn with loans more expensive and harder to obtain.
The massive advance still left the Dow down 36 percent from its Oct. 9, 2007, record close of 14,164.53. It has lost 20.6 percent since the Sept. 15 bankruptcy filing of Lehman Brothers Holdings Inc., the event led to almost dysfunction of financial system.
1 comment:
investors bet that share prices have been adequately slashed to reflect such economic pitfalls.
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