Wall Street went bargain-hunting for opportunities with a general price increase, closing at above 10%.
The Dow Jones index closed at 9.065 points, gaining 889 points (10.88%), while Standard & Poor's 500 closed in 940.51 points, with a reported gain of 91.5 points (10.79%). The Nasdaq closed at 1,649.67 points, gaining 143 points (9.53%).
This huge increase for the day is due to two factors: the purchase of undervalued shares after big losses in the last few weeks and the expectation of a cut in interest rates by the Federal Reserve tomorrow.
The Dow Jones industrial average opened 400 points higher and never looked back, led by big gains in financial stocks.
Last week’s stock sell-off gave way to a big rally, with the Dow Jones industrial average having its largest-ever point gain. The surge came as countries around the world took steps to ease the financial crisis, ushering in a drastic reshaping of the banking industry even as doubts lingered about its long-term effects.
On Friday, the Dow closed down about 100 points, its eighth consecutive decline.
Between the start and the finish was a day in which the Dow Jones industrial average swung 1,000 points and a wild final hour in which the market moved from almost 400 points down to 300 points higher, only to close down 128 points or 1.4 percent.
The broader Standard & Poor’s 500-stock index fell 10.70 points or 1.1 percent.
A late-day decline once again pushed the markets down sharply, with the Dow falling more than 600 points.
The Dow Jones industrial average lost 678.91 points, or 7.3 percent, on the day, while the broader Standard & Poor’s 500-stock index ended down 7.6 percent. The technology-heavy Nasdaq was down 5.47 percent.
And the reasons, by now, are a familiar litany — concerns about the credit markets, a slowdown in consumer spending, worries about the economy as a whole and the financial sector in particular.
Panic came to Wall Street on Monday morning, but its stay was brief, at least for one day.
The Dow Jones industrials finished more than 360 points lower, dropping below the 10,000 mark for the first time in five years, as markets around the world spiraled downward in the face of a banking crisis that has tightened its grip on the global economy.
The New York Stock Exchange was rising after its historic fall yesterday in hopes that the rescue plan will finally be approved.
At 16H00 GMT, the Dow Jones Industrial Average (DJIA) rose 266.74 points to 10,632.19 after having fallen close to 800 points on Monday.
The Nasdaq index, which is made mainly of technology companies, rose 62 points to 2,045.73 units and Standard's and Poor's 500 rose 3.21% (35.57) to 1,141.99.