Today's stock market was almost a complete reversal of what occurred on Monday. The DOW climbed over 260 points and the Nasdaq rose over 55 points. Each index was up about 2.5% on the day.
U.S. stocks staged a solid rally Tuesday to more than recoup the prior day's steep losses, as consumer confidence rose and crude prices declined, offering some respite to ongoing concerns about the economy.
"These are good things and when you combine that with relatively low rates, maybe we can be happy at least one day this week," said Kevin Giddis, managing director, Morgan Keegan & Co.
The major stock indexes built on gains to end at or near session highs after data showing a better-than-forecast rise in consumer confidence and the price of crude fell nearly $4 a barrel.
The main reason for the optimism today was the fact that oil prices fell again. Oil closed at $122.19 a barrel on the New York Mercantile Exchange. It was a two-month low for oil as Reuters reports in the video below. If oil were to continue falling maybe the market could sustain something longer than a single day rally.
