Wall Street roars back in wild trade
Stocks rallied yesterday in a volatile session as investors struggled to decipher the Fed’s signals on the economy after a dizzying two-week slide.
Buying accelerated into the close and the S&P 500 posted its best day in more than two years, following a drop of nearly 17 percent over the past weeks.
The market reversed direction six times after a Fed statement that pledged two more years of near-zero interest rates.
Bank shares roared back from recent losses with the KBW capital markets index up 6.7 percent.
“The last three or four weeks, the stock market has really discounted a mild recession,” said Mohannad Aama of Beam Capital Management LLC.
“The market has to start factoring in what the response from the Fed and the government will be. There is still a small chance for a fiscal stimulus aimed at job creation. The FOMC statement today was positive for equities.”