Wall Street extends rally after Fed decision
August 5, 2008
NEW YORK ” Wall Street has barreled higher, lifting the Dow Jones industrials about 330 points after the Federal Reserve eased investors’ fears about the economy. The Fed left interest rates unchanged and issued a more upbeat assessment of the economy than the market expected.
The Fed said “economic activity expanded in the second-quarter” due in part to growth in consumer spending. Wall Street’s worries about consumers have contributed to some of its big pullbacks in recent weeks.
Another drop in the price of oil ” which is now down nearly $30 from its mid-July high ” also lifted spirits on Wall Street. The Dow ended the day at the 11,615 level. It’s up nearly 3 percent on the day.