Reply #18: Wall Street to Rally on Renewed Hope

[ozymandius]

Wall Street looked set to rally on Tuesday after having plunged the previous day, with investors still hoping Congress will find a way to approve a $700 billion bailout plan for banks which it rejected on Monday.

The Dow posted its biggest one-day fall ever the previous day, and Asian markets opened sharply lower, but stocks later pared back some of the losses. In Europe, stocks turned positive on bargain-hunting and on hopes of interest rate cuts.

Violent market reaction increased pressure on Washington to approve compromise bailout legislation and fuelled expectations that the Fed would cut interest rates on or before its next meeting, which is scheduled for Oct. 29.

http://www.cnbc.com/id/26953104

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With all this faith in interest rate cuts based on hope, who needs legislation? I swear - the mind-numbing idiocy of some...