Stocks soared for a second day Thursday and the Dow had its best day in more than three years as good feelings about the Fed’s Wednesday announcement that rate hikes aren’t on the immediate horizon continued to boost the market.
The Dow Jones industrial average jumped 421.28 points, or 2.4%, to close at 17,778.15, its best one-day point gain since Nov. 30, 2011. The two-day rally saw the Dow gain 708 points, its best two-day point gain since Nov. 2008.
“The mini correction is over,” says David Kotok, chief investment officer at Cumberland Advisors. “The markets are again realizing that the (bull market) basics of low interest rates, low inflation, and a gradual economic recovery are solidly in place.”
The Standard & Poor’s 500 index gained 48.34 points, or 2.4%, to 2061.23 and has added 88 points, or 4.5%, in two days. That is the broad-based index’s best two-day percent performance in more than three years.
Gains were led by tech stocks, the best-performing sector in the S&P. The tech-heavy Nasdaq composite index rose 104.08 points, or 2.2%, to 4748.40.
The stock market’s two-day paper gain was approximately $1.1 trillion, according to Wilshire Associates.
“Fed-induced optimism sent the Dow to its best day of the year yesterday, and the blue-chip barometer is set to pick up right where it left off,” Karee Venema of Schaeffer’s Investment Research noted early in the day.
Investors in Europe, especially in Germany and France, are also relieved that the Russian ruble is showing signs of stabilization.
The CAC 40 of France jumped 3.4% and Germany’s DAX added 2.8%. The FTSE of Britain gained 2%.
In Asia, Japan’s Nikkei 225 index gained 2% and Hong Kong’s Hang Seng index gained 1%. The Shanghai composite fell 0.1%
The good market news comes in the wake of volatility churned in recent days by a plunging Russian ruble and cratering oil prices. The ruble has stabilized, now trading for about 60 to one U.S. dollar. Oil is dropping more: A barrel of West Texas intermediate crude is down shy of 2%, at a few dimes above $56.
its happy days..everything is working well again..phew!
“The mini correction is over,” says David Kotok
famous last words..