Stocks surge on bank plan, rise in home sales
Wall Street is getting the good news it wants on the economy’s biggest problems: banks and housing.
Investors reignited a two-week rally Monday, cheering the government’s plan to help banks remove bad assets from their books as well as a report showing a surprising increase in home sales. Major stock indicators jumped more than 4 percent including the Dow Jones industrial average, which surged 300 points.
The Treasury Department said its plan would rely on the government’s $700 billion financial rescue fund, the Federal Reserve and the Federal Deposit Insurance Corp., as well as private investors.
The housing report was overwhelmingly positive for the markets even though it showed a decline in home prices. Investors are embracing any sign that a glut in homes for sale may be easing.
The market got another dose of good news last week on the troubled industry as housing starts for February came in much better than expected.
This article was originally posted on Yahoo Finance