Dow Jones average up 286, erasing Friday's 2 percent drop
8/6/2007NEW YORK Wall Street surged higher in a volatile session today, reversing losses incurred Friday. The move comes even as investors wrestled with credit concerns ahead of Tuesday s Federal Reserve meeting.
Investors have been searching for signs of where the economy and the markets are headed after the fractious trading of the past two weeks.
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 later gained steam after midday.
The run-up comes ahead of the Fed s meeting on interest rates Tuesday. Policy makers are widely expected to hold the benchmark rate steady at 5.25 percent; as usual, the greater concern is with the Fed s economic assessment statement. This time, investors will be looking to see what the Fed says about credit.
According to preliminary calculations, the Dow Jones industrial average soared 286.70, or 2.17 percent, to 13,468.61, after zigzagging throughout much of the session.
Broader stock indicators also rebounded. The Standard & Poor s 500 index rose 34.57, or 2.41 percent, to 1,467.63. The Nasdaq composite index rose 36.08, or 1.44 percent, to 2,547.33.
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