Stocks Jump After Steep Sell-Off; Key Rate Rises

[Hissyspit]

Source: Associated Press

Stocks jump after steep sell-off; key rate rises

By TIM PARADIS, AP Business Writer
13 minutes ago
NEW YORK - Wall Street snapped back Tuesday after its biggest sell-off in years amid growing expectations that lawmakers will salvage a $700 billion rescue plan for the financial sector. But the seized-up credit markets where businesses turn to raise money showed no sign of relief.

In midday trading, the Dow Jones industrial average rose 253.04, or 2.44 percent, to 10,618.49 after falling nearly 7 percent on Monday to its lowest close in nearly three years. It was the largest point drop and 17th largest percentage drop in the blue chip index. The percentage decline was far less severe than the 20-plus-percent drops seen in the stock market crash of October 1987 and before the Great Depression.

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The rise in stocks wasn't unexpected as carnage on Wall Street often attracts bargain hunters, though questions remain about how investors will proceed. Without a bailout plan in place to absorb soured mortgage debt and other bad loans from banks' balance sheets, investors are wondering what might restore confidence in lending.

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Traders on the floor of the New York Stock Exchange, still stunned from Monday's 778-point plunge in the Dow Jones industrial average, warned that the government needs to approve a plan that will sweep away the fears that hobbled the credit markets. While U.S. political leaders have vowed to revisit the issue, the House isn't slated to meet again until Thursday.

Read more: http://news.yahoo.com/s/ap/wall_street

[Xipe Totec]

1. Dead moose bounce (nt)

[Smart Guy 4 Freedom]

3. Very Funny, but true!

[aquart]

2. I wasn't impressed yesterday and I ain't impressed today.

I guess the fact that the Asian markets lost less than we did pumped everybody up.

But buying air is still buying air.

Are derivatives still legal? Is bundling mortgages still legal? That's just two things that have to be fixed before anyone should feel confidence in this market. Just two of so much.

Deregulation is too damned expensive and always was. A free market regulates by death.