Stocks Rally Worldwide


Stocks rose around the world, sending the Dow Jones Industrial Average to a one-month high, as President-elect Barack Obama pledged to boost the economy with the biggest public-works spending package since the 1950s.

The S&P 500 surged 3.8 percent to 909.7, with all 10 industry groups advancing. The Dow added 298.76 points, or 3.5 percent, to 8,934.18 and earlier rose above 9,000 for the first time in a month. The Nasdaq Composite Index increased 4.1 percent to 1,571.74. Five stocks gained for each that fell on the New York Stock Exchange.

The S&P 500 has climbed in nine of the 11 trading sessions since Nov. 20, in part on speculation the Federal Reserve will cut interest rates and Congress will step up efforts to boost the economy. The benchmark index is still down 38 percent in 2008 after the collapse of the subprime mortgage market reduced average profits for five straight quarters.

The Dow Jones Stoxx 600 Index gained 6.7 percent to 202.61, the most in two weeks. The gauge is still down 44 percent in 2008, headed for its worst year on record.

National benchmarks climbed in all 17 western European markets that were open. The FTSE 100 gained 6.2 percent as BHP and Anglo American Plc led the advance. France’s CAC 40 rose 8.7 percent, with Total SA jumping 11 percent. Germany’s DAX added 7.6 percent, led by Siemens and Deutsche Boerse AG.


TradingEconomics.com, Bloomberg
12/8/2008 2:02:45 PM