The prospect that the world’s central bankers will juice the banking system with a new wave of easing sent stocks flying and the euro rallying .
Treasurys and bunds yields snapped higher as investors unloaded securities that were the safe havens of choice just a week ago. Commodities also soared , with oil up more than 2 percent.
“There’s just been, for the last 48, 72 hours a growing feeling that a 10 percent decline in the stock market is as deep a decline as you would get with Ben Bernanke lurking tomorrow,” said Dan Greenhaus, global strategist with BTIG.
The Dow soared more than 200 points in a rally fed by sharp gains in financial stocks, like Morgan Stanley, Citigroup, JPMorgan, and Bank of America. The European banking sector moved higher Tuesday and continued to rally, along with U.S. banks, in a more supercharged rally Wednesday.
Traders also said the victory of Republican Gov. Scott Walker in the Wisconsin recall election is a good sign for GOP presidential candidate Mitt Romney, and a negative for President Barack Obama.Page 1 of 5 | Next Page