It came and went in a flash, a number on a board for seconds at a time, but its symbolic power couldn't be dismissed. The Dow Jones industrial average, powered higher all year by optimism that the economic recovery is finally for real, crossed 13,000 on Tuesday for the first time since May 2008.
The Dow Jones industrial average is up 213 points, or 1.9 percent, at 11,483. It has erased all its losses from last week, when it swung more than 400 points four straight days on worries about a weakening economy.
Technical traders all but ignore fundamentals, such as corporate profits or expected growth rates. Instead they rely on stock-chart analyses that signal when to buy or sell the entire U.S. stock market. And in the absence of clear signs about the economy's direction, more of Wall Street is turning to technical trading and magnifying volatility.
The Dow Jones industrial average surged more than 429 points, its tenth highest point gain in history and the biggest since March 2009. It was just one day after the Dow had its worst point decline since 2008.
Gripped by fear of a new recession, the stock market suffered its worst day Thursday since the financial crisis in the fall of 2008. The Dow Jones industrial average fell more than 500 points, its ninth-steepest decline.
The Standard & Poor's 500 index fell more than 3 percent, bringing it 10 percent below its recent high of 1,363 reached on April 29. A decline of 10 percent is considered to be a market correction. The Dow Jones industrial average is now down more than 1,100 points from July 21. Watch video report at bottom of article.
The Dow Jones industrial average rose about 200 points in late afternoon trading. The Dow and broader indexes gained more than 2 percent. Interest rates rose as investors dumped Treasurys in favor of riskier assets like stocks.
View your ad here! Cost effective targeted advertising. Contextual advertising starting as low as $79/month. This includes targeted ad delivery and search results! Add your business to the Marketplace »