Wall Street gains on stimulus, mortgage aid hopes
Wall Street snapped a five-day losing streak, as an expected huge stimulus plan from China and new US efforts to ease home foreclosures helped mute the impact of weak economic data.Updated: Mar 05, 2009 11:04 IST
Wall Street snapped a five-day losing streak, as an expected huge stimulus plan from China and new US efforts to ease home foreclosures helped mute the impact of weak economic data.
The Dow Jones Industrial Average rallied 150.14 points (2.23 per cent) to 6,876.16 at the closing bell, as the blue chips rose from 12-year lows.
The technology-dominated Nasdaq climbed 32.73 points (2.48 per cent) to 1,353.74 and the Standard & Poor's 500 index jumped 16.52 points (2.37 per cent) to a preliminary close of 712.85.
Andy Brooks, equity strategist at T Rowe Price, said the market was due for a rebound after the drubbing of the past few sessions.
"We're all breathing a sigh of relief. This market has been incredibly oversold and the news has just been horrific," he said.
Brooks said there was some encouragement from President Barack Obama administration's launch of a mortgage aid program to limit foreclosures, which could ease pressure on the economy.
"And everybody is expecting a huge stimulus package from the Chinese tonight," he added.
"You see materials, commodities and steel as the real big movers and that's because of the Chinese stimulus.