Boosted investors drive Dow to 410-point gain

September 19, 2008 · By ProfitEdition News Filed Under Stocks

Investors, who were encouraged by signs of further steps by the government to stop the problems plaguing the financial markets, rushed backed into trampled down banking shares on Thursday, which bring an exited end for fluctuating day on Wall Street.

Dow Jones industrials surged to a 410-point gain in the final hour of trading on Thursday removing almost 449-point loss continued on Wednesday.

Though, this little improvement does not indicate the end of Wall Street worries.

Other remaining concerns regarding financial market health is signaled by the fears and stress developed in the credit markets. Banks charged each other higher loan rates and the worried investors flocked to the safety of Treasury bills.

Lending to consumers and some businesses has tightened that affected their spending most. Jane Caron, chief economic strategist at Dwight Asset Management, a bond investment firm stated that investors are still worried as they did not have seen the end of this crisis.

The Dow Jones industrial average went up 3.86 percent, to 11,019.69 while The Standard & Poor’s 500-stock index closed up 4.33 percent.

Though according to some economists, this recovery is due to boosting expectations among investors regarding government might be preparing to quarantine some of the most horrible assets held by major banks, rather than to an original enhancement in the financial environment.

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