U.S. Stocks Return to Pre-Downgrade Level
By CHRISTINE HAUSER
Stocks swept higher Monday on Wall Street, returning the overall market to where it was before the United States credit rating was downgraded.
A spate of mergers and acquisitions helped build a rally of more than 2 percent in the Standard & Poor’s 500-stock index, leading some analysts to weigh whether the surge signaled a possible period of stability after last week’s steep losses and volatility.
Standard & Poor’s downgraded the nation’s credit rating on Aug. 5, after the market had closed at 1,199.38. Stocks sold off the next week, with the S.& P. 500 and the Dow Jones industrial average finishing the five-day period nearly 2 percent lower. On Monday, however, the broader market as measured by the S.& P. 500 inched above the pre-downgrade level to close at 1,204.49, after gaining 25.68 points, or 2.2 percent.
The Dow was up 213.88 points, or 1.9 percent, at 11,482.90, also exceeding its pre-downgrade close of 11,444.61. The same was the case with the Nasdaq composite index, up 47.22 points, or 1.9 percent, at 2,555.20.
With gains of around 3 percent in utility, energy and bank stocks on Monday, analysts were cautiously weighing whether the worst of the recent upheaval was over.
“For now it is clear that in essence there is a relief in the market,” said Quincy Krosby, a market strategist for Prudential Financial. “You can feel it.”
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http://www.nytimes.com/2011/08/16/business/daily-stock-market-activity.html?_r=1&src=tp&pagewanted=print
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