Rate-Freeze Plan Lifts Stocks

Financial companies and builders lift the markets
By Sam Gale Rosen,  Newser Staff
Posted Dec 6, 2007 3:29 PM CST
The Countrywide Banking and Home Loans office is seen in Glendale, Calif. in this April 26, 2007 file photo. (AP Photo/Damian Dovarganes, file)   (Associated Press)
camera-icon View 4 more images

(Newser) – Stocks leaped again today after the Treasury Department's plan to freeze some mortgage rates eased fears of a recession. Investors also continue to expect that the Fed will cut interest rates on Dec. 11, the Wall Street Journal reports. The Dow was up 174.93 to 13,619.89, the Nasdaq 42.67 to 2,709.03, and the S&P 22.33 to 1,507.34.

"The market is sensing that both the government and the Fed are sufficiently focused on the subprime issue and are taking collective action,'' says a manager. Financial companies—including Countrywide and Fannie Mae—and builders lifted markets the most on expectations of strong bank profits and an easing housing slump.