NEW YORK — Wall Street soared for the second straight day Wednesday, rallying in the last hour of trading after a rebound in financial stocks and optimism about private-sector jobs.
The Dow Jones industrials rose more than 180 points, bringing its two-day gain to more than 450.
Bank and brokerage stocks, many trading at multiyear lows, turned higher and led the late advance. There was some relief in the market after the Federal Reserve said it would extend and expand its program to lend money to investment banks. The central bank’s move reassured the market that the banks would have cash if they needed it.
Investors have been worried that some of Wall Street’s biggest names will be slashing prices on more of their assets — and needing more money — after Merrill Lynch & Co. unexpectedly announced a $5.7 billion write-down late Monday.
“There’s a growing sense that what we saw out of Merrill Lynch is the beginning of the end for the financial cleanup,” said Craig Peckham, market strategist at Jefferies & Co.
Earlier, Automatic Data Processing said private-sector employment rose by 9,000 this month, and the stock market is eager for any insights into the Labor Department’s take on the job market Friday.
Light, sweet crude rose $4.58 to settle at $126.77 a barrel on the New York Mercantile Exchange. Oil has fallen sharply since hitting a high above $147 on July 11.
