The reason why it's up so much today is because the Treasury revealed their plan for toxic assets, which amazingly has a loophole in the plan so that banks can place bids for their own toxic assets and pass off the losses to the US taxpayer. It's basically another heist if they figure it out, which they will.
The market was clearly oversold so hence why this bear market rally the last couple weeks, but it's way too early to say there will be an economic recovery. We still have to see if this plan will work, which it never has in the past.
These big moves like 7% in one day are common in markets that are not healthy.
It's a good thing because Wall Street likes the plan, but we still have a long way to go. As I said above these crazy moves are typical in bear (bad) markets.
It's a good thing because Wall Street likes the plan, but we still have a long way to go. As I said above these crazy moves are typical in bear (bad) markets.