Stocks Rocket on Fed Rescue Plan
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Stocks soared to their best one-day gains in five years Tuesday on news of a global credit market rescue effort led by the Federal Reserve.
Major stock indexes surged nearly 4% on the plan by global central banks to pump $200 billion into frozen credit markets, a move that investors hope will create a market for assets that have stopped trading. The move could also mean fewer interest rate cuts by the Federal Reserve, which could ease inflation fears.
About the only technology sector showing weakness was wireless, with stocks like Nokia, RF Micro and Sprint held back by a warning from Texas Instruments, which ended the day 3% lower. Sprint shares have been under pressure since the company posted a huge loss last month.
Google finally reversed its long slide, jumping 6% on EU approval of its DoubleClick acquistion.
Stocks with gains of 4% or more include Microsoft, Intel, Cisco, Apple, Sun, Baidu and Research In Motion.
Systemax soared 31% on its results as it completed its acquisition of CompUSA.
The Nasdaq soared 86 to 2255, the S&P gained 47 to 1320, and the Dow soared 416 to 12,156. Volume rose to 5.25 billion shares on the NYSE, and 2.5 billion on the Nasdaq. Advancers led by a 27-5 margin on the NYSE, and 22-7 on the Nasdaq. Upside volume was 90% on the NYSE, and 89% on the Nasdaq. New highs-new lows were 24-162 on the NYSE, and 37-303 on the Nasdaq.