Late Rally Pushes Indexes Higher; Stocks See 2nd Gain In September
NEW YORK (WCBS 880/AP) – A late afternoon rally pushed the stock market higher for only the second day this month.
Major indexes had spent most of Monday lower as investors worried that Greece could be edging closer to a default.
The yield on the 10-year Treasury note reached another record low as investors piled into U.S. government debt.
The Dow Jones industrial average rose 69 points, or 0.6 percent, to close at 11,061. It had been down as many as 167 points.
The S&P 500 index rose 8, or 0.7 percent, to 1,162. It had dropped as many as 18 points. The Nasdaq rose 27 points, or 1.1 percent, to 2,495.
Falling stocks edged out rising ones on the New York Stock Exchange. Trading volume was average at 4.4 billion shares.
Earlier in the day, the Dow had been down as many as 135 points shortly after the opening bell.
Analyst Vince Farrel says countries helping in the bailout of Greece are losing faith.
“They’re thinking that you’re going to get a mass string of defaults,” said Farrel. “That you’re going to get Greece to default, that you’re get Portugal and you’re going to get Ireland.”
“A default by Greece would ripple through the global markets and it would make it more difficult for other European countries to borrow money,” said CBS business correspondent Alexis Christoforous.
The wild swings on Wall Street may be making investors queasy, but New York Times reporter Louise Story found some historical perspective.
“What’s interesting is even if you take out the data from say 2008 and 2009 when we had the financial crisis, nonetheless, still in the past decade, we’ve had more of these big swings than in the past,” said Story.
She says the ability to trade stocks with a click of the mouse also plays a part.
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