The Dow Jones industrial average climbed back above 10,000 Wednesday after investors had second thoughts about the heavy selling in the stock market during the last two weeks.
Stocks soared, and the Dow rose 275 points after a modest gain Tuesday. It was the market's first back-to-back advance since mid-June and the first close above the psychological benchmark of 10,000 since June 28.
But analysts warn the buying doesn't mean that investors are more optimistic. They said there wasn't a single catalyst behind the move and it looked like a case of investors scooping up stocks that had become cheaper after heavy losses.
The Dow and broader indexes gained more than 2 percent. Trading volume was light, however, signaling that many skeptical investors were staying out of the market. Interest rates rose as some investors dumped Treasurys in favor of riskier assets like stocks.
Financial stocks rose on an upbeat profit forecast from State Street Corp. The stock gained 9.9 percent. Materials stocks rose after having logged steep drops over worries about the economy.
The Dow rose 274.66, or 2.8 percent, to 10,018.28. It rose 57 points Tuesday. The index hasn't risen two straight days since June 17-18. The Standard & Poor's 500 index rose 32.21, or 3.1 percent, to 1,060.27, and the Nasdaq composite index rose 65.59, or 3.1 percent, 2,159.47.
Stocks have fallen for more than two months following a stream of economic reports that haven't met forecasts. The numbers indicate that the economy is growing, though not as fast as investors had hoped earlier this year.- AP