NEW YORK -- Stocks surged late today, adding to broad gains and sending the Dow industrials soaring to its third-best point gain ever, after the Federal Reserve cut short-term interest rates for the second time in less than a month. Dow up 330
The Dow Jones industrial average, down as much as 48.66 in the early going, was up about 100 points when the Fed surprised traders with its move late in the trading day. The Dow finished up 330.58, or 4.2 percent, at 8,299.36.
The blue-chip average has now rallied more than 800 points from last Thursday's low, but still remains about 1,000 points, or 11.1 percent, below the July 17 peak of 9,337.97. The gain, while not near a record in percentage terms, trailed only the 380.53 points, or 5 percent rise, of Sept. 8, and the 337.17 points, or 4.7 percent increase, on Oct. 28, 1997, a day after plunging a record 554.26. With the convincing rise back above 8,000, the Dow now is 4.9 percent above where it began the year.
The Standard & Poor's 500 rose 41.96, or 4.2 percent, to 1,047.49.
The technology-heavy Nasdaq composite index rose 70.04, or 4.6 percent, to 1,611.01.
Advancers outnumbered decliners by more than a 3-to-1 margin on the New York Stock Exchange, with 2,469 up, 678 down and 387 unchanged.
NYSE volume totaled 927.31 million shares, up from 782.91 million yesterday.
The NYSE composite index rose 19.48 to 516.46, and the American Stock Exchange composite index rose 15.65 to 598.66.
The Russell 2000 index of smaller companies rose 9.83 to 334.81.
The 30-year Treasury bond soared 1-15/32 to 108-22/32, with the yield falling to 4.94 percent.