US stocks held hefty gains in late afternoon trading today, as word of a substantial economic stimulus plan put forth by the White House lifted hopes the market can break its three-year losing streak in 2003.
US President George W. Bush is expected to announce the details of a $600 billion economic stimulus package tomorrow that will include proposals to eliminate taxes on dividends, speed up reductions in income tax rates and allow companies to quickly write off more of their investments.
The Dow Jones industrial average surged 182.17 points, or 2.12 per cent, to 8,783.86, while the broad S&P 500 gained 21.95 points, or 2.42 per cent, to 930.54. The technology-packed Nasdaq Composite Index rose 38.25 points, or 2.76 per cent, to 1,425.33.
Stocks of companies that pay dividends jumped. Investment bank JP Morgan Chase & Co. advanced $2.02, or 8 per cent, to $27.96, and were among the most active on the New York Stock Exchange.
Shares of local telephone companies surged, driving gains in the S&P 500, after the Wall Street Journalsaid US regulators would force new providers to pay higher prices to rent network access or buy more of their own equipment.
The start of the year has brought fresh optimism that the market can finally make a comeback after a three-year string of stock market declines.