U.S. Stock Prices Soar, Gaining Back
Half of Monday's Huge Loss
Financial markets continued to see-saw world-wide Tuesday, but US markets soared on expectations that Congress will later this week approve the financial rescue legislation that failed in the House of Representatives on Monday.
The Dow Jones Industrials gained 485 points or 4.7 percent to close at 10,850. The advance was the biggest daily gain in six years, recovering more than half of Monday's huge nearly nine-percent plunge.
The advance was fueled by statements from both presidential candidates saying they favored the administration's $700-billion line of credit that would allow the government to buy up the bad loans of the banking industry. President Bush also expressed optimism saying that Monday's defeat was not the end of the legislative process.
On Wall Street, trader Teddy Weisberg of Seaport Securities said the financial rescue is in the interests of all Americans.
"Because what happens in the financial system basically drives our economy at every level," said Teddy Weisberg. "And if the financial system freezes up and breaks down it will have ripple effects not only throughout our economy but the world's economies."
Weisberg spoke on Marketwatch.com. Overall, the US stock market had its worst September since 2002 with the Standard and Poors Index registering a nine percent decline.
In Europe stock prices fell and currencies tumbled on
news that banking authorities were extending lifelines to several financial
institutions. The euro, the common currency of 15 European Union nations,
had its biggest daily decline against the dollar since 2001. The euro
fell 2.4 percent to $1.41. The British pound was again down sharply,
declining to $1.77.75. The pound was trading at $2 just three months
ago. Gold lost $13 to under $881 an ounce.
© VOA News
Related News Clips
-- Senate leaders called a vote for tonight on a $700 billion emergency bailout of the banking system, a move designed to give the House a political lift after the legislation's spectacular crash there on Monday.
-- The Senate bill includes a big hike in the limit on federally insured deposits to $250,000 from the current $100,000 cap. The bill also includes popular tax-relief measures. An effort is underway to add some accounting relief for companies that have to revalue mortgage-related holdings.
-- The Conference Board said Tuesday that its Consumer Confidence
Index rose to 59.8 from an upwardly revised 58.5 in August. A survey
of economists had expected the index to fall to 55, according to Briefing.com.
McCain, Obama Urge Congress to
Act on Financial Rescue Plan
Bush Confident About Financial Bailout Plan
The New York Stock Exchange was first organized on May 17, 1792. First constitution, March 8, 1817 and first incorporation, February 18, 1971.