New Rescue Hopes Lift Stocks

Bargain hunters out en masse
By Kevin Spak,  Newser Staff
Posted Sep 30, 2008 8:44 AM CDT
New Rescue Hopes Lift Stocks
Specialist Patrick Murphy, left, directs trading in Citibank at his post on the floor of the New York Stock Exchange, Monday afternoon Sept. 29, 2008.    (AP Photo/Richard Drew)

(Newser) – Stocks rose at the open today, as traders bet on a new rescue plan and picked over the wreckage of yesterday’s record-setting drop. The Dow rose almost 218 points, while the Nasdaq and S&P were up 2.5% and 2.6% respectively. “After the absolute carnage we had yesterday there's inevitably going to be some bargain hunting,” said one trader. “Markets are pinning their hopes that a deal can be reached by the end of the week.”

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If that doesn’t happen, the economic damage will be “painful and lasting,” President Bush said in a brief statement this morning. Many are also hoping to see an emergency intra-meeting rate cut from the Fed. Financial stocks rose on that speculation, with Citigroup up 8% after dropping 12% yesterday, and Wachovia rising 30% after yesterday's 82% skydive. (Read more economy stories.)

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