Big rally on big board

March 18, 2008 6:23:50 PM PDT
Wall Street has stormed higher after an interest rate cut and two big earnings reports calmed a very worried market. The Federal Reserve cut interest rates three-quarters of a percentage point, and indicated it is continuing its close watch on the economy and the troubled credit markets. And the news from Goldman Sachs & Co. and Lehman Brothers Inc. reassured investors that the investment banks are not likely to follow the in the path of the stricken Bear Stearns Cos.

The Dow ended the day up about 420 points at the 12,392 level.

The S&P 500 added 54 points to 1,330. And the Nasdaq composite surged 91 points to 2,268.

Advancing issues topped decliners by a commanding 8-to-1 margin.

Volume on the NYSE was 5.2 billion shares. Nasdaq stock market volume was 2.3 billion.