tocks rallied Tuesday on news that the Federal Reserve, in coordination with central banks worldwide, will lend up to $200 billion to banks in an effort to loosen up tight credit markets.
The Dow Jones industrial average (INDU) jumped almost 417 points, its fourth-biggest one-day point gain ever and the biggest one-day point gain since July 2002. In percentage terms, the gain of 3.55% was the best since March 2003...
The Fed will make up to $200 billion available to a group of 20 big investment firms for a term of 28 days. The funds are available in exchange for debt, including AAA-rated mortgage securities, which many investors have avoided lately on worries that defaults in the underlying assets will diminish the value.
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