Stock Market Information

Wall Street managed to stage a fairly significant rally the day after it’s largest one day sell off in history. It’s entirely likely that the selling brought in buyers looking for stocks that were unfairly beaten down. Many financial stocks in particular like Bank of America and Apollo Investments both saw huge gains today, but the longetivity of this rally can easily be brought into question.

This is due to the fact that much of the buying was because investors are increasingly confident that a bailout is on the way. Despite the failure the first iteration of the bill to pass in Congress yesterday, many politicians have vowed to go back to the drawing board and pass what they see as a necessary measure to help stem the increased amount of bleeding out of the U.S economy. There’s been bitter talks on both sides of the political fence, but ultimately the general public doesn’t want to see a bailout. If pressure continues from voters, there may be a much smaller government intervention than was originally anticipated.

Traders on the floor argued that the government needs to take action, or there could be another serious decline in the markets. As one trader, Jason Weisberg, an NYSE trader for Seaport Securities noted: “If it doesn’t pass, then look out below, it could get ugly.”

Until there’s a resolution to the government plan one way or the other, many investors will remain cautious and stay on the sidelines. It’s expected that a vote of no could mean that there would be a slow bleed in the markets over a course of months, but there’s nothing to do for most consumers but wait and see, as the House isn’t slated to meet up again until Thursday.