Smile in Wall Street

The brokerage in the Wall Street finally can smile wide. Hope on declining in interest rates make Dow Jones index over more than 10%.

Investors returned to collect shares with the blessing and a weaker yen also news that the Central Bank of Japan will lower interest rates again tribe. The strengthening of the yen rapidly since early this week has been dragging on the stock market destabilization in various parts of the world.

Meanwhile, the U.S. Central Bank (the Fed) also expected to be lower interest rates by 50 basis points to 1% in the meetings that started this evening.

In trading Tuesday (10/28/2008), Dow Jones index closed sharply appreciating to 889.35 points (10.88%) to a level of 9065.12. Standard & Poor’s also increased sharply to 91.59 points (10.79%) level to 940.51. While the Nasdaq appreciating to 143.57 points (9.53%) to a level of 1649.47.

This is the second largest increase ever recorded, Dow Jones and S & P in history. The largest increase recorded on October 13, when the Dow Jones jumped 936.42 points and the S & P 500 jumped 104.13 points.

Increase shares occurred despite data showing that home price for single family in the U.S. declined sharply to 16.6% during August.

Shares the ‘hungry’ capital, such as telecommunications sector recorded the largest increase. Such as Verizon Communications, which increased to 14%, AT & T rose to 13%.

Shares the energy sector also supported the strengthening of Dow Jones. British oil company BP reported a profit increase, the shares directly appreciating sharply. Meanwhile, ExxonMobil and Chevron shares rose to 13%.

Similarly, Boeing shares, which jumped to 15.5% after the U.S. announced agreement with workers to end strike action while pressing the loss of U.S. $ 100 million per day.

Investors began to think that the shares are in the position of markets, and it’s time to Rebound.

“If you believe that government from various parts of the world will be successful to give more energy to the financial market and gradually bring more stability and trust in the week-week and month, the more likely you want to be buyers instead of sellers,” said Michael Sheldon, chief market strategist RDM Financial, as quoted from Reuters, Wednesday.

Trade in the New York Stock Exchange is quite moderate with 1.73 billion shares change hands, slightly below average last year of 1.90 billion shares. The volume of trade increased sharply in recent sessions. Meanwhile, the Nasdaq, as much as 2.88 billion shares trade, above the average of years ago that as many as 2.17 billion shares.

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