US stock markets soar after bailout plan

March 23, 2009

United States stock markets surged on Monday, following an announcement by the government to give another bailout to the banks. All three major stock indexes posted gains of about seven percent at the closing bell.

Part of the rally was attributed to the US Treasury's announcement that it will buy up to US$1 trillion in toxic assets.

The Dow Jones Industrial Average gained 497.48 points, or 6.84%, to a level of 7,775.86, while the Nasdaq Composite soared 98.50 points, or 6.76%, to 1,555.77 points. The Standard & Poor's 500 index jumped by 7.07% or 54.37 points, reaching a level of 822.91.

Among the winners in today's rally were bank stocks. Shares for the Frontier Financial Corporation, a regional bank serving the northwestern US, surged by 52%. Other banks also saw their shares increase: Bank of America stocks increased by 26%, JP Morgan Chase by 25%, and Citigroup by 19.5%.

Crude oil prices were up $1.73 or three percent to $53.8 a barrel.

Overseas stock exchanges also rallied: indexes in France, the United Kingdom, and Germany all rose by approximately 2.8%.