Greatest daily jump in history ended 8-day stocks bloodbath
October 13, 2008
U.S. and international stocks sprang higher on Monday to end brutal week for stock market around the globe. A frantic weekend of international government actions bolstered confidence in the banking sector and credit markets.
The Dow Jones Industrial Average gained 936.42 points, or 11.1%, to end at 9,387.61, its greatest daily point jump ever and its biggest one-day rally since 1933. Monday jump ended the eight-day losing streak that had drained 2,400 points from the Dow, or 22 percent. The eight-day losing streak is roughly equal to the 1987 crash and enough to establish a bear market all on its own.
The massive rebound also pushed the S&P 500 higher by 104.1 points, or 11.6%, to end at 1,003.32. It is a greatest percentage gain in 69-years.
The Nasdaq Composite climbed 194.75 points, or 11.8%, its second-biggest gain in percentage terms, to end at 1,844.25.
Before Wall Street opened, Asia and Europe markets had shown large surge. Hong Kong's Hang Seng spiked 10.1%, Europe's Eurostoxx 600 rose 9.9%, Germany's DAX index and Paris' CAC index jumping more than 11%, and London's FTSE-100 index rising 8%.
The Fed and other central banks announced plans to provide as much dollar liquidity as needed in short-term funding markets. The 15 eurozone countries said they will guarantee new bank debt until the end of 2009. In addition, several European countries announced plans to guarantee interbank landing and directly inject capital in financial firms. The U.K. government plans to inject up to $63 billion in three U.K. banks.
Table: BusinessWeek.com
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