Stocks rallied today as investors cheered the Federal Reserve’s sharp federal funds rate cut and other policy measures designed to combat the economic crisis, the Wall Street Journal reports. The Dow rose 359.61 to close at 8,924.14. The Nasdaq climbed 81.55, closing at 1,589.89, and the S&P 500 gained 44.61 to settle at 913.18.
After the Labor Department reported a 1.7% drop in consumer prices, financials led stocks higher, with beleaguered Citigroup up 11% and JPMorgan Chase climbing 13.1%. Genworth Financial surged 25% on the probability that its acquisition of a troubled Minnesota bank would give it access to government assistance. Crude oil futures fell $0.91 to $43.53 a barrel, despite an expected OPEC production cut.