11 March, 2008

Markets Experience Rebound Rally as Government pledges $200 Billion

Well that good old trusty Government in the United States decided to up the ante in the credit recovery debacle. The US will pump upwards of $200Billion to ease liquidity worries throughout the Financial sector. Is this too late? Maybe, but traders didn't seem to think so as major indices jumped much higher on the news.

The Dow jumped over 400 points, closing up 3.5% while the Nasdaq up 4% and the S&P up 3.7% followed suit. The Financial sector was especially active today as Citigroup (C) up 9%, Bank Of America (BAC) up 7% and Wachovia (WB) up 13%, experienced hefty gains.

Several recent battered technology names also staged recoveries on the day, with one of the most notable being Google (GOOG) up $26 or 6.3% as news surfaced from the European Union blessing its acquisition of DoubleClick. This clearance allows the search giant to finally start to integrate DoubleClick into its own operations and being to expand DoubleClick display advertising technology in an attempt to supplement its market leading position in search based textual advertising.

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