US stocks surge

Comment on this story
IOL wall street THE PHOTO HOLIC File image

US stocks rallied sharply in opening trade Monday as Wall Street rode optimism spurred by Federal Reserve chief Ben Bernanke's remarks and Hurricane Irene's lighter-than-expected damage.

The Dow Jones Industrial Average rose 162.72 points (1.44 percent) to 11,447.26 in the first 10 minutes of trading.

The broader S&P 500 advanced 19.17 points (1.63 percent) to 1,195.97, while the tech-rich Nasdaq Composite climbed 40.64 points (1.64 percent) to 2,520.49.

Stocks ended the week Friday higher, after four straight weeks of decline, lifted by a key speech by Bernanke indicating the central bank expects economic growth will accelerate in the second half of the year.

Lingering optimism stemming from Bernanke's speech “has helped the bulls resume the reins, despite the central banker's ambiguous stance on another round of quantitative easing,” said Andrea Kramer at Schaeffer's Investment Research.

“In addition, Tropical Storm Irene's relatively tame path of destruction has also sparked optimism,” she said.

Hurricane Irene, which was later downgraded to a tropical storm, largely spared New Yorkers as it tore through the US east coast over the weekend. - Sapa-AFP

sign up

Comment Guidelines

  1. Please read our comment guidelines.
  2. Login and register, if you haven’ t already.
  3. Write your comment in the block below and click (Post As)
  4. Has a comment offended you? Hover your mouse over the comment and wait until a small triangle appears on the right-hand side. Click triangle () and select "Flag as inappropriate". Our moderators will take action if need be.

  5. Verified email addresses: All users on Independent Media news sites are now required to have a verified email address before being allowed to comment on articles. You are only required to verify your email address once to have full access to commenting on articles. For more information please read our comment guidelines