The Dow Jones Industrial Average climbed above 10,000 for the first time in a year, led by lenders, as US stocks approached their highest levels since Lehman Brothers Holdings Inc’s bankruptcy sent the global economy into a tailspin.
Bank of America Corp, American Express and JPMorgan Chase & Co more than doubled since the 30-stock gauge slid to a 12-year low on March 9 as global financial firms began recovering from $1.6 trillion in writedowns and credit losses. International Business Machines Corp and Hewlett-Packard jumped at least 52 per cent on signs the nation was recovering from the worst recession in seven decades.
The Dow fell as much as 43 per cent after Lehman filed the largest bankruptcy and dragged the financial system to the brink of collapse. Investors have returned to the stock market after the US government lent, spent or guaranteed $11.6 trillion to shore up banks and revive the economy. “A lot of people make fun of these milestones, but I think that it has an effect on psychology,” said David Darst, the New-York based chief investment strategist at Morgan Stanley.
