A drop in oil prices, a rise in the U.S. dollar and a strong jump in financial service and consumer discretionary stocks caused a broad equity rally today.
The Dow Jones industrial average jumped 302.89, or 2.65%, to 11,734.32, while the S&P 500 rose 30.25 points, or 2.39% to 1,296.31. The Nasdaq composite increased 58.37 points, or 2.48%, to 2,414.10. All numbers are preliminary.
West Texas Intermediate crude fell $5.19 or 4.32% on Nymex. WTI now stands 20% below its all-time high of $147.27, which was hit on July 11. This move continued the recent downtrend in commodities. The DJAIG commodity index fell 6.35 points, or 3.25%, to 189.299.
The dollar made a strong rally against major currencies. The euro fell 3.05 cents to $1.50, one of the sharpest decreases in recent years. The dollar was also stronger against the British pound and the yen.
In corporate news, Fannie Mae cut its dividend from 35 cents a quarter to 5 cents a quarter today as the company reported continued losses from the troubled U.S. housing market. Fannie Mae stock fell 91 cents, or 9.15%, to $9.04. McDonalds Corp. same-store sales for July rose 6.7% in the United States and 8% globally. McDonalds stock rose to an all-time high of $66.24 intraday before settling at $65.57.