Go to the Globe and Mail homepage

Jump to main navigationJump to main content

Globe Investor

Inside the Market

Up-to-the-minute insights
on developing market news

Entry archive:

Dow Jones vaults 500 points higher Add to ...

U.S. stocks rallied on Monday as a global push by governments to pump cash into banks fueled a rebound in financial shares, and credit markets showed some signs of loosening up.

Morgan Stanley was among the standouts: Its shares soared more than 56 percent after Japan's Mitsubishi UFJ Financial Group said it paid $9-billion (U.S.) for a 21 percent stake in the beaten-down U.S. securities firm that has turned itself into a bank holding company.

Shares of Wachovia rose more than 4 percent after the U.S. Federal Reserve approved the $12.46-billion purchase of the beleaguered U.S. bank by Wells Fargo & Co. The S&P financial index rose almost 4 percent.

The Dow Jones industrial average jumped 525.84 points, or 6.22 percent, to 8,977.03. The Standard & Poor's 500 Index gained 56.37 points, or 6.27 percent, to 955.59. The Nasdaq Composite Index soared 104.49 points, or 6.33 percent, to 1,754.00.

Wall Street capped its worst week ever on Friday, falling for an 8th straight session, as investors feared the credit crisis was spiraling out of control and the global economy was threatened by deep recession.

Stock markets leaped in Asia overnight and again in Europe, where the FTSEurofirst 300, an index of leading European shares, shot up more than 9 percent.

On Nasdaq, shares of Apple Inc led advancers, with a gain of 7.3 percent to $103.93. Citigroup raised its recommendation on the U.S. technology hardware and equipment sector to "market weight" from "underweight."

U.S. trading was light, however, with the U.S. bond market closed for the Columbus Day holiday. Japanese markets were also closed for a national holiday on Monday.


For Globe Unlimited Subscribers

Business videos »

Most popular videos »


Most Popular Stories