Portfolio Crafter
12-05-2007, 05:48 AM
End of Day Market Summary - Wednesday, November 28, 2007
by Portfolio Crafter (http://www.wealthpire.com/cmd.php?Clk=1838416)
Stocks surged Wednesday, with the Dow industrials rallying 331 points, after comments from a Federal Reserve official sparked bets that the central bank will cut rates again at its next policy meeting.
A rebound for the embattled financial sector and plunging oil prices helped Wall Street advance for the second session in a row.
The Dow Jones industrial average gained 331 points, its second-best single day advance of the year. The 30-stock index climbed by as much as 366 points during the session. The broader S&P 500 index rose about 2.9 percent and the tech-fueled Nasdaq climbed 3.2 percent.
Stocks rallied Tuesday as well. The two-day advance boosted the Dow by 546.01 points, giving it its best two-day run on a point basis since October 2002.
Wednesday's big rally was sparked by comments from Donald Kohn, the Federal Reserve's No. 2 official. Kohn seemed to signal a change in recent Fed policy, saying that the recent market turmoil has reversed some of the improvements in market functioning seen at the time of the last Fed meeting at the end of October.
He said that the central bank needs to be "nimble" and that it can't risk a threat to the economy just to teach speculators a lesson.
Stock participants seemed to take this as an indication that the Federal Reserve plans to cut a key short-term interest rate at the Dec. 11 meeting, as investors have been hoping. Investors will be looking to see if Federal Reserve Chairman Ben Bernanke reaffirms this viewpoint when he speaks Thursday night.
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by Portfolio Crafter (http://www.wealthpire.com/cmd.php?Clk=1838416)
Stocks surged Wednesday, with the Dow industrials rallying 331 points, after comments from a Federal Reserve official sparked bets that the central bank will cut rates again at its next policy meeting.
A rebound for the embattled financial sector and plunging oil prices helped Wall Street advance for the second session in a row.
The Dow Jones industrial average gained 331 points, its second-best single day advance of the year. The 30-stock index climbed by as much as 366 points during the session. The broader S&P 500 index rose about 2.9 percent and the tech-fueled Nasdaq climbed 3.2 percent.
Stocks rallied Tuesday as well. The two-day advance boosted the Dow by 546.01 points, giving it its best two-day run on a point basis since October 2002.
Wednesday's big rally was sparked by comments from Donald Kohn, the Federal Reserve's No. 2 official. Kohn seemed to signal a change in recent Fed policy, saying that the recent market turmoil has reversed some of the improvements in market functioning seen at the time of the last Fed meeting at the end of October.
He said that the central bank needs to be "nimble" and that it can't risk a threat to the economy just to teach speculators a lesson.
Stock participants seemed to take this as an indication that the Federal Reserve plans to cut a key short-term interest rate at the Dec. 11 meeting, as investors have been hoping. Investors will be looking to see if Federal Reserve Chairman Ben Bernanke reaffirms this viewpoint when he speaks Thursday night.
Join PortfolioCrafter.com (http://www.wealthpire.com/cmd.php?Clk=1838416)
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