Wall Street recorded one of its biggest gains of all time on Thursday, after investors took advantage of a few signs that the economy might just be able to avoid a new recession.
Wall Street rocketed after Cisco Systems said its profit was better than expected, the job market got a little better, and France tried to raise confidence in its shaken banking system.
According to Carlton Neel, who manages about $2 billion as a senior portfolio manager at Virtus Investment Partners, investors are so scared of being late to a rally or a sell-off that they are trading in herds.
“Fear tends to be a much more powerful emotion, and the sell-offs tend to be more violent than the rallies,” Neel told AP. “But people are worried about missing the bottom, so you will have a few melt-ups along the way.”
The past four days have taken a place in Wall Street history, noted AP. The Dow’s losses on Monday and Wednesday were its sixth- and ninth-largest by points, and its gains on Tuesday and Thursday were the 10th- and 11th-largest.
Monday’s trading day was also the worst one Wall Street had since the 2008 recession, a fact brought on by S&P’s decision to downgrade the United States’ credit rating.