Stocks Jump on Rate-Cut Hope

Strong opening on global rallies
By Kevin Spak,  Newser Staff
Posted Oct 28, 2008 8:53 AM CDT
A trader laughs while working on the floor of the New York Stock Exchange Monday, Oct. 20, 2008.    (AP Photo/Richard Drew)
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(Newser) – Stocks shot up at the bell this morning, powered by rallies overseas and speculation that another Fed rate cut is coming down the pike. The Dow rose 239, while the S&P and Nasdaq saw 2.9% and 3.3% jumps respectively. Hong Kong’s Hang Seng in particular saw a dizzying 14.4% jump after a grisly day yesterday, though one market watcher warned that Asia’s “trading mentality” could render gains ephemeral.

The Fed began its deliberations today, and investors are betting it’ll slash 0.5% from its benchmark rate, bringing it to just 1%. Citigroup also announced that its US balanced funds would be moving heavily into stocks this week, which could shoot life into a market short on liquidity. There was bad news, however, from Whirlpool, which trimmed its 2008 guidance and will cut 5,000 jobs.