After dropping due to the drastic measures imposed by the government to the auto industry, stocks rebounded Tuesday even if economic data promised no immediate bright spots.
The Dow gained 86.90 points to close at 7,608.92 (1.16% higher) ending March with a gain of 7.7%, its best performance since October of 2002. Technology-oriented Nasdaq closed Tuesday’s trading up by 1.78% at 1,528.59. Standard & Poor 500 also up by 1.31% at 797.87.
The Dow dropped 3.27% on Monday after President Obama’s auto task force announced General Motors and Chrysler’s failure to turn things around. The task force also asked for the resignation of GM CEO and Chairman Richard Wagoner.
“Much of the credit for today’s rally should probably go to the window-dressing efforts of money managers, who snapped up outperforming stocks en masse in an attempt to inflate their investment returns,” Elizabeth Harrow at Schaeffer’s Investment Research said.
Source: AFP
