Posted by Jenny Sutton
NEW YORK - Wall Street got the news it wanted on the economy’s biggest problems — banks and housing — and celebrated by hurtling the Dow Jones industrials up nearly 500 points.
Investors added rocket fuel Monday to a two-week-old advance, cheering the government’s plan to help banks remove bad assets from their books and also welcoming a report showing a surprising increase in home sales. Major stock indicators surged about 7 percent, including the Dow, which had its biggest percentage gain since October.
Analysts who have seen the market’s recent false starts are still hesitant to say Wall Street is indeed recovering from the collapse that began last fall. But the day’s banking and housing news bolstered the growing belief that the economy is starting to heal, and that is what had investors buying.