Global stock markets staged an explosive rally Thursday, embracing a move by the Federal Reserve to try to rejuvenate the U.S. economy by buying $600 billion in Treasury bonds.
Traders’ uncertainty has put a big September rally on hold, at least momentarily, before the central bank’s meeting Tuesday.
Stocks and interest rates are down sharply as investors take a bleaker view of the U.S. economy. The Dow Jones closed down 265 points.
The stock market began August with a huge rally after economic and earnings reports from around the world revived investors’ faith in the global recovery.