Stocks Soar At Opening After Gov’t Rescue Plan
NEW YORK — Wall Street is extending its huge rally as investors storm back into the market, relieved that the government plans to rescue banks from billions of dollars in bad debt.
The Dow Jones industrials are up 275 points at the 11,295 level after soaring 410 Thursday on first word of the plan. Treasury Secretary Henry Paulson will be speaking at 10 a.m. Eastern time about the plan, which is expected to help alleviate the year-old credit crisis.
While this definitely is a relief rally, some of the buying is also likely due to the Securities and Exchange Commission’s temporary ban on short sales on 800 financial stocks. That practice has helped send bank stocks sharply lower, and traders who engage in it are expected to be buying to adjust their positions.
