Economics
Wall Street Smells a Rate Cut
Investors celebrated Tuesday's expected easing a day early, with financials getting an added boost from cash infusions to UBS and MBIA
This article is for subscribers only.
Major U.S. stock indexes ended higher on Monday, with market sentiment buoyed by expectations that another Fed rate cut on Tuesday will bring some relief to tight credit markets and stimulate the economy. Two new cash infusions into troubled financial companies likely sparked hopes of further relief to persistently tight credit markets.
The Dow Jones industrial average finished 101.45 points, or 0.74%, higher at 13,727.03. The broader S&P 500 index gained 11.30 points, or 0.75%, to trade at 1,515.96. The tech-heavy Nasdaq composite index was up 12.79 points, or 0.47%, at 2,718.95.