Stocks End September Selling Spree, Dow Ramps 275
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Stocks ramped higher Wednesday as investors felt more secure putting money to work after the spate of recent selling. Confidence was bolstered by progress in Europe, speculation of an end to tightening in China and ahead of President Obama's speech on jobs Thursday. Possible QE3 from the Federal Reserve was also an underlying reason for the strength.
The Dow jumped 275 points to 11,415.86 and finished at the highs. The Nasdaq rose 75 and the S&P 500 added 33.
The upswing ended three straight days of losses.
In Europe, a German judge ruled the country can participate in Eurozone bailouts and in Italy, the Senate approved the controversial austerity program. The DAX rebounded 4 percent Wednesday.
China stocks ended a sharp slide on speculation the central bank may stop tightening monetary policy and instead start easing. The Hang Seng rose 337.50 points, or 1.7 percent.
Details of President Obama's speech on jobs, scheduled for Thursday, leaked and the plan looks aggressive. He is expected to propose a $300 billion jobs plans with tax cuts, infrastructure spending and direct aid to state and local governments.
Multiple media reports Wednesday suggested "Operation Twist" is gaining momentum among Federal Reserve members. The potential plan would shift the composition of the Fed's balance sheet to longer-dated maturities. This would be done by selling short-term securities and buying longer-term securities and would have the desired result of lowering longer-term interest rates. In addition, dovish Fed member Charles Evans said "significant amounts of policy accommodation" may be needed to boost the economy.
Gold was weak, which also helped the case for stocks as money coming out of the precious metal needed a place to rest. Gold for December last traded at $1,819.80, down $53.50.
The Dow jumped 275 points to 11,415.86 and finished at the highs. The Nasdaq rose 75 and the S&P 500 added 33.
The upswing ended three straight days of losses.
In Europe, a German judge ruled the country can participate in Eurozone bailouts and in Italy, the Senate approved the controversial austerity program. The DAX rebounded 4 percent Wednesday.
China stocks ended a sharp slide on speculation the central bank may stop tightening monetary policy and instead start easing. The Hang Seng rose 337.50 points, or 1.7 percent.
Details of President Obama's speech on jobs, scheduled for Thursday, leaked and the plan looks aggressive. He is expected to propose a $300 billion jobs plans with tax cuts, infrastructure spending and direct aid to state and local governments.
Multiple media reports Wednesday suggested "Operation Twist" is gaining momentum among Federal Reserve members. The potential plan would shift the composition of the Fed's balance sheet to longer-dated maturities. This would be done by selling short-term securities and buying longer-term securities and would have the desired result of lowering longer-term interest rates. In addition, dovish Fed member Charles Evans said "significant amounts of policy accommodation" may be needed to boost the economy.
Gold was weak, which also helped the case for stocks as money coming out of the precious metal needed a place to rest. Gold for December last traded at $1,819.80, down $53.50.
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