NEW YORK -- It was a promising start to the week on Wall Street, as the Blue Chips gained more than 400 points.
Talk of a second economic stimulus package from Fed Chairman Ben Bernanke, along with improvement in key lending rates, gave investors the confidence to buy stocks.
The Dow Jones jumped more than 4.5 percent Monday to close up 413.21 point at 9,265.45.
The S&P 500 Index rose 4.8 percent to settle at 985.85.
The tech-heavy Nasdaq also closed in positive territory. It climbed 3.4 percent to end at 1,770.03.
Trading on the New York Stock Exchange during the first two hours totaled 1.8 billion shares. Volume on the Nasdaq Market came to 727 million shares.
Speaking to lawmakers, Federal Reserve Chairman Ben Bernanke supported the notion of another economic stimulus package. He noted that the economy may be weak for some time. Credit conditions among banks have improved for a sixth consecutive business day. That's particularly the case in the U.S., as confidence in the financial sector appears to be improving after the rescue measures announced in recent weeks by central banks and governments.
The Conference Board's Index of Leading Economic Indicators rose for the first time in five months, up 0.3 percent. However,
economists say it was distorted by a jump in the money supply.
Gasoline prices have dropped further below $3 a gallon, approaching year-ago levels. The price of crude oil was rising with OPEC planning to announce a cut in output at a meeting later this week.
Bush To Hear From Main Street
President George W. Bush is headed to Main Street to hear how the financial freeze is hurting average Americans amid claims from his top economic adviser that a recession is under way in parts of the country. See previous story.
At a Chamber of Commerce roundtable in Louisiana, the president will hear about difficulties getting a loan.
Over the weekend, Bush expressed optimism that the government rescue effort will stabilize the economy, yet Ed Lazear, chairman of the White House Council of Economic Advisers, said it is going to take several more months before the nation's clogged lending system starts working again.
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