Rate cut hopes push up stocks
Thursday, August 30th, 2007Investors are becoming more optimistic about a possible rate-cut in the US. Stocks rebounded on Wednesday and reclaimed most of their losses. The Dow Jones industrial ended at 13,289.29 points, up 1.9 % percent. It saw a nearly 280 point drop on Tuesday. The Fed is expected to cut rates to 4% as the slowing US economy will limit inflation.
Stocks rebounded sharply Wednesday, as investors, growing more optimistic about chances for an interest rate cut, sought bargains after the previous session’s huge tumble.
The Dow Jones industrial average climbed 247.44 points, or 1.9 percent, to 13,289.29, making up nearly all of its 280-point drop Tuesday. All 30 stocks in the blue-chip gauge rose a day after all of them fell.
The Standard & Poor’s 500 index added 31.40, or 2.2 percent, to 1463.76. All 10 industry groups advanced, with 482 of the index’s members posting gains. The tech-heavy Nasdaq composite index gained 62.52, or 2.5 percent, to 2563.16, its best performance since June 2006.