Monday’s Market Recap: Dow Has Its Best Day In History

Monday came as a relief for many investors as the Dow rebounded off of its worst week ever with its best day in history. The Dow (^DJI) skyrocketed 936 points to 9,387, or 11.08%. The S&P and Nasdaq (^IXIC) also had record days with increases of 11.58%, and 11.81% respectively. This enormous growth can be attributed to the news that the Treasury will be buying stakes in American banks to provide credit relief for the banks and to make credit more available for future loans. The Treasury is planning to lend out $250 billion dollars into thousands of banks as soon as Tuesday.

To complement this extraordinary news, central banks from Europe like the Bank of England, European Central Bank, and the Swiss National Bank have devoted “unlimited dollar funds” to commercial banks that need U.S. Dollars through a series of short-term loans.

Other markets around the world cashed in on this series of good news. Asian markets were sharply up today, the Hang Seng closed up 10.20%, the Shanghai climbed 3.6%, and the BSE appreciated 7.6%. The European markets also believed things might be turning around as the FTSE (^FTSE) increased 7.14%, the DAX (^GDAXI), 11.4%, and the CAC 40, 11.18%.

Investors saw this rebound as a lifeline for falling oil prices as they also made a come back and crude was trading at $81.19 when the market closed. Gold prices declined on this news as risk averse investors saw this news as a sign of better things to come, and a great entry point into the volatile market.

General Motors (GM) is considering a potential merger with either Ford (F), or Chrysler LLC to help in their financial troubles. However, many analysts believe this would not help the failing companies, and can possibly make things worse for both firms.

Apple (AAPL) was up big today on news that their iPhone 3G might be sold at major retailers nationwide, and should help with distribution this holiday season. These major retailers include Wal-Mart (WMT), and Best Buy (BBY).

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