Wall Streets Wild Ride: Market Surges over 900 Points

The hope is that this rapid rise is a signal that the Dow has hit bottom after eight straight sessions of devastating losses.

NEW YORK, NY (Catholic Online) - On Monday, October 13, 2008, what has been the ever plummeting Wall Street Dow Jones Industrial Average took an abrupt turn, upward. The Dow Jones Indistrial average rose more than 900 points in what is being hailed by some as a "Global Response" Rally.

The term refers to indications that the American market is responding favorably to the gathering of International leaders this weekend to address the global financial crisis. Monday's rise is the largest rise in a single session in the Dow's history.

Of course, the hope among both institutional investors and so many ordinary Americans who have watched their retirement savings plummet is that this rapid rise is a signal that the Dow has hit bottom after eight sessions of losses that sent the Dow Jones average down almost 2,400 points.

Many "experts" interviewed throughout the afternoon, as the trading session showed that the early rally would last, predicted a see saw Dow action, a back and forth approach, as the week continues, due to the continued insecurity in the banking sector.

Monday was Columbus Day in the United States. Though the Market was open for trading, it was a holiday for the U.S. bond markets and US banks. Therefore some experts indicated it was hard to gauge how the financial sector will respond to this one day surge and the actions being taken by European leaders.

Jim King, the chief investment officer of National Penn Investors Trust Co., sounded a cautionary tone, noting that the plunge in the Dow had created a buying opportunity, "We have exceptional companies at fire sale prices," but cautioned "Even if this is the beginning of a recovery we're not just going to have up markets from here on in. We're not through the woods. We think there is collateral damage from this debacle."

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