Wall Street had another huge rally on Friday, with stocks soaring as investors stormed back into the market following a government plan to restore calm to the financial system.
The Dow Jones industrials rose about 370 points, giving them a massive gain of about 780 over two days, and Treasurys fell as money flowed into equities.
The plan to rescue banks from billions of dollars in bad debt has reassured investors who worried that a continuum of bad bets on mortgages would hobble more financial companies and cause even more damage to the banking system and the overall economy.
A new government ban on short selling, or placing bets that a stock will fall, likely added to the market’s gains as traders adjusted their positions.
Even with Friday’s big gains, stocks didn’t end the week with much change after the whipsaw sessions.
Broader stock indicators also surged Friday. The S&P 500 index rose 48.57, or 4.03 percent, to 1,255.08, and the Nasdaq composite index rose 74.80, or 3.40 percent, to 2,273.90.
Treasury prices dropped as investors poured money back into stocks. The yield on the 3-month Treasury bill—a safe investment to which investors have rushed this week—rose to 0.99 percent from 0.07 percent late Thursday. Yields move opposite from price. The yield on the benchmark 10-year Treasury note shot up to 3.80 percent from 3.53 percent late Thursday.
(Source: Associated Press)
Join the official YWN WhatsApp status
One Response
Hashlech al Hashem yehovecha v’Hu yechalkelecha, lo yitein le’olam mot latzaddik (Tehillim 55:23)
“Cast upon Hashem your burden, and He will sustain you; He will never allow a Tzaddik to falter.”
Gut Shabbos to all, and to us Ashkenzazim who join our Sefardi bothers and sisters tomorrow night in Selichos, may all our tefillos be niskabel.