Bond Prices, Stocks Rally From Losses --- Industrials Plummet 50, Recover to Post Gain of 22.51 Points
The Dow Jones Industrial Average staged a stunning comeback after plunging more than 50 points amid plummeting bond prices at home and abroad. The U.S. bond market also recovered, with prices rising modestly. The dollar fell.</br></br>The Dow Jones Industrial Average climbed 22.51 points to 3831.74. Standard & Poor's 500-Stock Index edged up 0.37 to 464.81, but the Nasdaq Composite Index fell 5.17 to 783.47.</br></br>Investors had barely wiped the sleep from their eyes yesterday morning when the stock and bond markets appeared to be headed for another rout. The Dow Jones industrials plummeted 1.4% in the first 20 minutes, and bond prices tumbled nearly a point, driving long-term interest rates up as high as 6.85%.</br></br>"You walk in and you're up against the wall," said Joseph Battipaglia, chief investment strategist at Gruntal & Co. "But then as everyone sifted through things, the market found some support."</br></br>The turmoil in the U.S. had its roots overseas. A sell-off began in Asia, swept into Europe and then landed on U.S. shores. Adding to the U.S. bond market's woes early in the session were January data showing strong personal spending and gains in wages and salaries.