U.S stocks staged a major rally recently, a day after the Federal Reserve's announcement to pump $600 billion into the economy. All three main indexes finished at two-year highs.
Investors bought in to the Federal Reserve's new plan to stimulate the economy, pushing broad stock market indexes to their highest levels since the worst of the financial crisis more than two years ago.
The central bank's decision to pour an additional $600 billion into the economy by buying Treasury bonds has been greeted with some skepticism and criticism as well as praise, but investors appeared to conclude Thursday that there was no use in fighting the Fed.
The Dow Jones industrials jumped 219.71 points, or 2%, to 11,434.84. The broader Standard & Poor's 500 index, used as a benchmark for many funds held in 401(k) accounts, climbed 1.9% to its highest level since Sept. 19, 2008, the week Lehman Bros. collapsed.
The labor market has been a focus for investors hoping for recovery, and they'll get the latest barometer early Friday with the release of the government's monthly jobs data. Reports on housing and consumer credit are also on tap.
Let’s just hope that the market stabilizes soon.
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Disclosure: "No Positions"