Stocks surged at the opening bell this morning, as traders registered approval of the central banks’ move to inject $360 billion into global money markets. The Dow jumped 118 points, while the S&P and Nasdaq rose 1.6% and 2% respectively. “These joint interventions are welcomed by the market, showing the Fed is trying to solve the logjam,” said one economist.
The US’ two remaining independent brokerages both dropped, with Morgan Stanley down 8% and Goldman Sachs falling 6.6%, but elsewhere financials saw an uptick. Washington Mutual rose 14% on rumors that it would be sold, while Wachovia rose 7.5% on rumors of a merger with Morgan Stanley. Bank of America led a big bank surge, rising 8.6%.