MARKETS-GLOBAL/WALL STREET Wall St. posts biggest rally of the year after global market rout
Record ID:
142367
MARKETS-GLOBAL/WALL STREET Wall St. posts biggest rally of the year after global market rout
- Title: MARKETS-GLOBAL/WALL STREET Wall St. posts biggest rally of the year after global market rout
- Date: 25th August 2015
- Summary: NEW YORK, NEW YORK, UNITED STATES (AUGUST 25, 2015) (REUTERS) TILT DOWN OF NEW YORK STOCK EXCHANGE VARIOUS OF FLAGS PAN FROM FLAGS TO STOCK TICKER VARIOUS OF TICKER (SOUNDBITE) (English) STEVE YOUCHAK, NEW YORK STOCK EXCHANGE PASSERBY, SAYING: "No, not so much. I think we've seen such a good run up over the last three or four years that this is just a slight correction and I don't think that it's going to be long term. It was due. Overall, globally I don't think it's a problem nor here domestically I don't think it's an issue." VARIOUS OF TICKER (SOUNDBITE) (English) ELSABE STEYN, VISITOR FROM SOUTH AFRICA, SAYING: "If the American stock exchange suffers then the rest of the world will suffer and there's a lot of people that are dependent on what the economy in the U.S. is doing. I'm from South Africa and I can tell you, if the economy is bad here, we have a two-year ripple effect when it's affecting us. After two years we can feel it much worse because it's like a tsunami that's just coming through. It is really bad, if it's going that way and I hope they fix it." (SOUNDBITE) (English) AL GLADE, NEW YORK STOCK EXCHANGE PASSERBY, SAYING: "No I'm not going to retire for another 15 years, so my ex's income is still paying student loans." (SOUNDBITE) (English) GEORGE MURPHY, VISITOR FROM DALLAS, SAYING: "For average working people like us, my wife is a nurse and we watch it somewhat closely because of our 401k. We feel that it's at the peak of a bubble right now. So we're worried about the fact that it could just totally collapse because of what's happening in China and Greece." VARIOUS OF SECURITY IN FRONT OF NEW YORK STOCK EXCHANGE TILT DOWN OF NEW YORK STOCK EXCHANGE
- Embargoed: 9th September 2015 13:00
- Keywords:
- Topics: General
- Reuters ID: LVA7EE717TKUMCQX5QIFRPIHOP8Z
- Aspect Ratio: 16:9
- Story Text: U.S. stocks posted their sharpest rally of the year on Tuesday (August 25), as investors sought out bargains a day after Wall Street's worst performance in four years on fears China's economy was slowing.
A few passersby outside of the New York Stock Exchange weren't concerned about Wall Street's performance.
"I think we've seen such a good run up over the last three or four years that this is just a slight correction and I don't think that it's going to be long term," Steve Youchak said.
"It was due. Overall, globally I don't think it's a problem nor here domestically I don't think it's an issue."
"No I'm not going to retire for another 15 years, so my ex's income is still paying student loans," Al Glade said.
Markets also got a shot of good news with China's second interest rate cut in two months.
The Nasdaq composite index led the way with a 3.2 percent rise, boosted by Apple's 5.7 percent gain to $108.96. The stock slumped as much as 13 percent on Monday.
Analysts were cautious, however, and even with Tuesday's gains, the Dow and the S&P were on track for the their worst monthly losses since February 2009, while the Nasdaq was poised for its steepest monthly fall since November 2008.
"If the American stock exchange suffers then the rest of the world will suffer and there's a lot of people that are dependent on what the economy in the U.S. is doing," Elsabe Steyn said, a visitor to the New York Stock Exchange.
"I'm from South Africa and I can tell you, if the economy is bad here, we have a two-year ripple effect when it's affecting us. After two years we can feel it much worse because it's like a tsunami that's just coming through. It is really bad, if it's going that way and I hope they fix it."
"For average working people like us, my wife is a nurse and we watch it somewhat closely because of our 401k," George Murphy said.
"We feel that it's at the peak of a bubble right now. So we're worried about the fact that it could just totally collapse because of what's happening in China and Greece."
The move by China's central bank came after Chinese stocks slumped 8 percent on Tuesday following an 8.5 percent drop on Monday.
On Monday, the Dow Jones industrial average briefly slumped more than 1,000 points - its steepest intraday fall ever - and the S&P 500 recorded its worst day since 2011.
At 11:11 a.m. ET the Dow Jones industrial average was up 362.84 points, or 2.29 percent, at 16,234.19, the S&P 500 was up 46.47 points, or 2.45 percent, at 1,939.68 and the Nasdaq Composite was up 144.35 points, or 3.19 percent, at 4,670.60.
All 10 major S&P sectors were higher, with the technology index's 2.52 percent rise leading the advancers. U.S. banks rose, with Bank of America up 4.8 percent at $16.02.
Oil prices were up about 3 percent, bouncing back from heavy losses on Tuesday, but was still below $40 per barrel.
New U.S. single-family home sales rebounded in July and consumer confidence increased to a seven-month high in August, pointing to underlying strength in the economy that could still allow the Federal Reserve to raise interest rates this year.
Traders now see a 26 percent chance that the Fed would increase rates in September, up from 22 percent on Monday, according to overnight indexed swap rates.
The dollar, which fell to a 7-month low against a basket of currencies on Monday, was up more than 1 percent.
Disney was up 3.1 percent at $98.37.
Best Buy jumped 12.9 percent to $33.12 after the owner of the biggest U.S. electronics chain reported an unexpected increase in quarterly sales.
Advancing issues outnumbered decliners on the NYSE by 2,501 to 515. On the Nasdaq, 2,136 issues rose and 623 fell.
The S&P 500 index showed one new 52-week high and three new lows, while the Nasdaq recorded seven new highs and 48 new lows. - Copyright Holder: REUTERS
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