2-Day Advancement for Wall Street

January 25, 2008

(Long Island, N.Y.) For the second straight day, Wall Street bounced back with big gains to hold a mini rally for those monstrous losses experienced since the start of January this year. Leading the upsurge was Dow Jones Industrials which was up by over 100 points Thursday to record a 2-day advancement of over 400 points in total. The Dow Jones finished trading with 12378.61 exactly 108.44 points or 0.88% higher when the day started. Nasdaq composite index gained 44.51 points while Standard & Poor 500 also rose by 13.47 points.

The announcement by the Federal Reserve and the government of an agreement that could earn taxpayers a refund ranging from $600 to $1200 or possibly more if you declared in your tax statements a dependent was the main factor experts attributed to for the 2-day rise. Also, some hope of optimism can be felt in the market as the upcoming January 29th - 30th meeting by the Federal Reserves nears. An expected decision in lowering Interest Rates even further could also play a huge role if the proposed plan pushes through. This would mean that a number of people struggling to hold on to their properties could gain a reprieve once the Interest rates are lowered and this could pave the way for the US economy to avoid the Recession.

Bill Dwyer chief executive of MTB Investment Advisors said. “People have that ‘R’ word stuck on the front of their forehead. It’s really just a dramatic slowing of growth. We may not have a recession,”

Stephen Carl who is the head of equity trading at the Williams Capital Group said, “We still have a long way to go in getting the economy on track,” Carl said. “Whether we dip into a recession or not, a lot of things need to be fleshed out in the markets.”

With several more proposed plans by congressional lawmakers and the Federal Reserves to add to the so called stimulus package they released this week, all of which are aimed at helping the economy and bond insurers in principle, stability in the Stock Market could finally be forged if investors decide that stocks are secure and bottoms have already been hit leaving only one way for things to bounce back: going up.

Posted by News LI Editor · Edited by Brianna - Filed Under Money