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Dow Rally Ends Dreadful Month
By Nick McMaster
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Posted Oct 31, 08 3:39 PM CDT
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(Newser)
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Stocks rallied today despite a slew of poor economic reports as investors instead focused on falling rates in the credit markets, MarketWatch reports. Though the Dow was up 11.3% for the week, October ended as the worst month since 1987. The Dow rose 144.32 to close at 9,325.01, the Nasdaq climbed 22.43 to 1,720.95, and the S&P gained 14.66 to 968.75.
US consumer purchases fell 0.3% in September, the biggest decline in 4 years. The Reuters/University of Michigan index of consumer sentiment fell a record amount this month, and an index of economic activity in the Chicago area hit its lowest level since May. But the overnight Libor rate fell to 0.40% from 0.73% yesterday, far below the Federal Reserve’s target of 1%, and the 3-month overnight rate dropped to 3.026% from 3.1925%.
- For the month, the Dow declined 14.1%, the Nasdaq fell 17.7%, and the S&P 500 sank 16.9%