After inaugural dip, US stocks rebound on Obama hopes

January 22nd, 2009 - 8:11 am ICT by IANS  

Barack ObamaNew York, Jan 22 (DPA) US stock indices rebounded Wednesday after massive losses on US inauguration day that appeared more connected to faltering bank confidence than to the new President Barack Obama.An unexpected 12 percent profit rise for technology conglomerate International Business Machines that was reported Tuesday helped buoy the markets Wednesday, as did confidence in Obama’s rescue plans for the recession-damaged economy, financial media reported.

Plans by Bank of America Corp company executives to buy up shares also helped revive the financial sector.

On Tuesday, the Dow fell more than 4 percent to close below 8,000 points, the worst performance in inaugural history, as Obama warned the recovery would take time.

But on Wednesday, the blue-chip Dow rallied 279.01 points or 3.51 percent, to 8,228.10. The Standard and Poor’s 500 Index gained 35.02 points or 4.35 percent to 840.24. The technology-heavy Nasdaq Composite Index added 66.21 points, or 4.6 percent, to 1,507.07.

The US currency fell against the euro to 76.79 euro cents from 77.62 euro cents on Tuesday. The dollar also fell against the Japanese currency to 89.31 yen from 89.72 yen on Tuesday.

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