Stock market surges back

August 12th, 2011 - 1:04 am ICT by Aishwarya Bhatt  

New York, Aug 11 (THAINDIAN NEWS) The US stock market opened on Thursday fairly better than it did on Wednesday. The Dow Jones Industrial Average recovered from the record losses it made yesterday.

Wednesday was the ninth worst day for the Dow in terms of losses. It shed 520 points by the close of trading which greatly affected the mood of investors. At the opening of the stock market on Thursday, the Dow gained 274 points and moved to 10996. The gained points represented 2.6 percent.

Standard & Poor’s 500 stoxx index was also on the up gaining 2.8 percent which represents 32 points. The Nasdaq composite rose by 3.1 percent to settle at 2454. All the gains though pale when compared to the losses on Wednesday. S&P 500 lost 13 percent of its value at the close of trading while the Nasdaq plummeted 14 percent. The Dow’s loss was 12 percent of its value.

Deputy chief investment officer for Wells Fargo Private Bank, Erik Davidson, warned investors of trading on emotions. He said that, “The tone is certainly emotional and headline-driven. At some point, rationality will prevail. But the emotions are so high; 2008 is not a distant memory.”

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