New York – Wall Street surged higher in a volatile session Monday, offsetting the losses it incurred Friday but showing more fractiousness than conviction in an advance that lifted the Dow Jones industrials 286 points, its biggest gain in nearly five years.
Investors tried to balance their concerns about the availability of credit with hopes that today’s Federal Reserve meeting will be a calming influence after two weeks of frenetic trading on Wall Street. In a day devoid of economic news and with few earnings reports, investors early in the session seemed to avoid making big bets, though stocks then gained steam after midday.
The Dow soared 286.87, or 2.18 percent, to 13,468.78. The blue chips closed near their highs after zigzagging throughout much of the session. On Friday, the Dow fell 281 points.
The Dow’s biggest single-session point gain since October 2002 follows a number of choppy sessions in which investor sentiment has vacillated between fear about lending to occasional bursts of optimism. Eight of the past 10 sessions have seen swings greater than 100 points in the Dow.
The erratic activity has followed the stock market’s high July 19, when the Dow closed above 14,000 for the first time.
“I really wouldn’t read too much into it,” said Charles Norton, principal and portfolio manager at GNI Capital.
“You’d like to see it be led by the market leaders, not the sort of stuff bouncing off the bottom that’s been beaten up,” he said, referring to financial stocks and regional banks.
Broader stock indicators also rebounded. The S&P 500 rose 34.61, or 2.42 percent, to 1,467.67. The Nasdaq composite index rose 36.08, or 1.44 percent, to 2,547.33.
The main concern today is with the Fed’s economic assessment statement. This time, investors will be looking to see what the Fed says about credit.
