Stocks staged a huge rally Monday afternoon, with the Dow rising by as much as 976 points at one point as investors bet that the worst of the credit crisis is over, following a series of global initiatives announced over the past few days.
The Dow Jones industrial average ended 936 points higher. The advance was the largest ever during a session on a point basis. The gain was equal to 11.1 percent, the fourth-best day ever on a percentage basis, reported CNN.
The Standard & Poorїs 500 index added 11.7 percent and the Nasdaq composite added 11.8 percent.
Stocks were buoyant Monday as investors welcomed a global effort to unfreeze the credit market and get money flowing through the system again. Although stocks reacted positively, credit markets barely budged.
їWe had some good news this morning from the Fed and the other central banks, but we were also oversold on an historic level and due for a big bounce,ї said Ryan Detrick, senior technical strategist at Schaefferїs Investment Research.