US stocks rebound from plunge

August 9th, 2011 - 11:06 pm ICT by IANS  

New York, Aug 9 (IANS) US stocks rebounded Tuesday from a full-day selloff with three major indexes jumping over one percent, Xinhua reported.

After a historic downgrade of US credit rating by Standard & Poor’s, the Wall Street suffered a sharp decline Monday, with the S&P; and Nasdaq sinking over six percent and Dow Jones 5.5 percent.

Traders believed the Tuesday morning gain was a correction from the big selloff from the previous trading day.

The Federal Open Market Committee (FOMC) was expected to hold its regular meeting Tuesday and issue a statement.

However, investors did not think the Fed will push another round of quantitative easing policy in the near future but will continue its easing monetary policy.

The Dow Jones industrial average gained 109.51 points, or 1.01 percent, to 10,919.36. The Standard & Poor’s 500 was up 12.23 points, or 1.09 percent, to 1,131.69.

The Nasdaq Composite Index rose 33.43 points, or 1.42 percent, to 2,391.12.

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