Wall Street recovers from last week’s losses

August 16th, 2011 - 5:43 am ICT by IANS  

New York, Aug 16 (IANS) Wall Street rallied Monday helping to erase all losses after the Standard & Poor’s downgrading of the US rating, as investors were hunting bargains following a roller-coaster week, Xinhua reported.

As the downgrade aftermath fades away, the investors are now paying more attention to the economic situation. With a positive view toward future markets and a belief that shares such as the technological ones will have a good return, bargain hunters are returning to the market, it said.

The Dow Jones industrial average gained 213.88 points, or 1.90 percent, to 11,482.90 after the blue-chip index swung over 400 points in four of five trading days last week, marking it one of the most volatile weeks in Wall Street history.

Bank of America surged 7.9 percent to lead the gainers in all 30 Dow components after the company sold an $8.6-billion Canadian credit-card portfolio to Toronto-Dominion Bank.

The bellwether Poor’s 500 rallied 25.68 points, or 2.18 percent, to 1,204.49, led by the utility and energy sectors.

The tech-heavy Nasdaq Composite Index jumped 47.22 points, or 1. 88 percent, to 2,555.20. Monday’s move marked the third straight gains for major indexes, and the best three-day performance for stocks since March 2009.

So far, stocks have erased all losses after the Standard & Poor’s downgraded the US triple-A rating, resulting in severe volatility in the market.

Major indexes were also boosted by another piece of deal-making news. Search engine giant Google announced to purchase wireless phone maker Motorola Mobility Holdings at $12.5 billion in cash, the biggest acquisition in Google’s history.

Investors were looking forward to Tuesday’s meeting between French and German leaders, hoping some initiatives can come out to restore confidence in credit and other markets.

Meanwhile, some of the economic data will also draw investors’ attentions this week, including housing starts, initial jobless claims and Wal-Mart’s earnings.

In other markets, the US dollar traded mixed against major currencies in late New York trading Monday and oil prices surged Monday as concerns about European debt eased.

Light, sweet crude for September delivery rose $2.50, or 2.93 percent to settle at $87.88 a barrel on the New York Mercantile Exchange.

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