US stocks rise on new government lending programmeNovember 26th, 2008 - 7:25 am ICT by IANS
New York, Nov 26 (DPA) US markets got a slight boost from government plans announced Tuesday to pump an additional $800 billion into the struggling economy and unfreeze credit for consumers and small businesses.The increases continued a three-day rally on Wall Street. The blue-chip Dow Jones Industrial Average rose 36.06 points, or 0.4 per cent, to 8,479.47. The broad-based Standard & Poor’s 500 Index gained 5.58, or 0.7 percent, to 857.39, while the technology heavy Nasdaq Composite Index slipped 7.29 points, or 0.5 percent, to 1,464.73.
This second stimulus follows the $700-billion rescue package already approved by Congress. Under one of the two new programmes, the Fed will use $600 billion to buy mortgage-backed securities to reduce the cost of home mortgages.
The other programme, the Term Asset-Backed Securities Loan Facility (TALF), by the Federal Reserve Bank of New York, will create a lending facility worth $200 billion to holders of securities backed by consumer debt - credit card, student and auto loans. This will essentially make it easier for consumers to borrow money.
The plan outweighed figures released Tuesday that showed the economy shrank 0.5 percent in the third quarter.
The US dollar traded at 76.54 euro cents and 95.22 Japanese yen.
- US stocks rally led by banks - Jun 23, 2012
- Federal Reserve, Treasury take more steps to boost lending - Nov 26, 2008
- US Fed takes more steps to unfreeze credit markets - Nov 25, 2008
- US fixed mortgage rates back to record lows - Sep 21, 2012
- US mortgage applications down despite record low rates - Apr 26, 2012
- Federal Reserve to pump more liquidity into US economy - Sep 14, 2012
- US mortgage applications drop - Feb 16, 2012
- US stocks end higher on holiday sales - Nov 29, 2011
- Sensex closes 283 points lower on profit booking (Roundup) - Feb 22, 2012
- US mortgage applications fall - Mar 22, 2012
- South Korean economic indicators weakening on sagging export - Aug 07, 2012
- Sensex closes at 34 points (Roundup) - Apr 18, 2012
- Wall Street cheers strong gains in first quarter - Apr 01, 2011
- US consumer credit up in October - Dec 08, 2011
- US sues financial firms over mortgage losses - Sep 03, 2011