Skip to main content

The stock market loves the idea of bailout, is uncomfortable when the arrival of a bailout looks imminent, and is downright hostile to the cancellation of a bailout. That, at least, is a reasonable summary of stock market activity in recent days as the proposed $700-billion (U.S.) rescue plan moves in and out of focus.

On Tuesday at noon, the idea of a bailout was alive and well, if for no other reason than a simple math equation is making the rounds: On Monday alone, the U.S. stock market lost more money than the bailout is worth, making the rescue plan look like a relatively small price to pay.

The Dow Jones industrial average was up 288 points, or 2.8 per cent, to 10,654. The broader S&P 500 was up 36 points, or 3.2 per cent, to 1142. Although those are handsome gains, they make up less than half of the ground lost during Monday's stock market rout when the Dow fell 778 points.

Story continues below advertisement

At the S&P 500, all 10 subindexes were higher, reflecting the widespread nature of the rally. Financials were in the lead, rising 8.9 per cent, energy stocks rose 4.8 per cent and information technology stocks rose 3.2 per cent. The safer stocks were the laggards, but even they enjoyed reasonable gains. Utilities rose 0.6 per cent and consumer staples rose 1.5 per cent.

In Canada, the S&P/TSX composite index performed even better. At noon, it was up 488 points, or 4.3 per cent, to 11,773, recovering nearly 60 per cent of the losses sustained on Monday.

There, too, all 10 subindexes were higher. Information technology, dominated by Research In Motion Ltd., rose 7.3 per cent, energy rose 5.9 per cent, financials rose 3.9 per cent and materials rose 3.3 per cent.

Report an error

The Globe invites you to share your views. Please stay on topic and be respectful to everyone. For more information on our commenting policies and how our community-based moderation works, please read our Community Guidelines and our Terms and Conditions.

We’ve made some technical updates to our commenting software. If you are experiencing any issues posting comments, simply log out and log back in.

Discussion loading… ✨

Combined Shape Created with Sketch.

Combined Shape Created with Sketch.

Thank you!

You are now subscribed to the newsletter at

You can unsubscribe from this newsletter or Globe promotions at any time by clicking the link at the bottom of the newsletter, or by emailing us at