Stocks Stage Biggest Two-Day Rally in Five Years
This article is from the archive of The New York Sun before the launch of its new website in 2022. The Sun has neither altered nor updated such articles but will seek to correct any errors, mis-categorizations or other problems introduced during transfer.
American stocks staged the biggest two-day rally in five years, led by financial shares, after the vice chairman of the Federal Reserve, Donald Kohn, buttressed expectations for another interest rate cut. Citigroup Inc., Lehman Brothers Holdings Inc., Morgan Stanley, and Goldman Sachs Group Inc. rose more than 5% as banks and brokerages in the Standard & Poor’s 500 Index gained the most since 2002. EBay Inc. and Amazon.com Inc. helped push the Nasdaq Composite Index to a 3.2% gain after Sanford C. Bernstein & Co. forecast a “strong” fourth quarter for both.
“Kohn’s comments just add to a perception that the Fed is embarking on a sustained path of easing,” the chief investment strategist at Oppenheimer Holdings Inc., which manages $60 billion, Michael Metz, said. “There’s also huge relief that the worst of the financial crisis may be behind us.”
