US Stocks Rise in Extended Rally 10/04 09:44
Stocks rose sharply in morning trading on Wall Street Tuesday and clawed
back more of the ground they lost in a miserable several weeks.
NEW YORK (AP) -- Stocks rose sharply in morning trading on Wall Street
Tuesday and clawed back more of the ground they lost in a miserable several
The S&P 500 rose 2.8% as of 10:15 a.m. Eastern. The benchmark index has been
rallying since hitting its lowest point of the year on Friday to close out a
The Dow Jones Industrial Average rose 744 points, or 2.5%, to 30,236 and the
Nasdaq rose 3.3%. Small company stocks also made solid gains. The Russell 2000
The broad gains come as investors look for signs that central banks might
ease up on their aggressive rate hikes aimed at taming the hottest inflation in
four decades. Australia's central bank made an interest rate hike that was
smaller than previous ones.
European and Asian markets also made solid gains. Australia's market jumped
Treasury yields continued to pull back from their multiyear highs, which has
helped relieve some of the pressure on stocks. The yield on the 10-year
Treasury, which helps set rates for mortgages and many other kinds of loans,
fell to 3.59% from 3.65% late Monday. It got as high as 4% last week after
starting the year at just 1.51%.
Central banks are being closely watched as they raise interest rates to make
borrowing more difficult and slow economic growth to try to tame inflation.
Investors are hoping that they will eventually ease off their aggressive rate
hikes and the move by Australia's central bank is a hopeful sign for some.
Wall Street is worried that the rate hikes, especially the increases from
the Federal Reserve, could go too far in slowing growth and send economies into
a recession. The Fed has already pushed its key overnight interest rate to a
range of 3% to 3.25%, up from virtually zero as recently as March.
Economic growth is already slowing globally and the U.S. economy contracted
during the first two quarters of the year, which is considered an informal
signal of a recession. The economy still has several strong pockets, including
employment. Wall Street will get a more detailed look at the employment
situation in the U.S. when the government releases its monthly jobs report for
September on Friday.