NEW YORK - WALL Street rose in early trading on Monday, boosted by China's US$586 billion (S$872.9 billion) stimulus package, a move that investors believe will help ease the global economic downturn.
The advance follows a rally in Asia and Europe after China announced plans to boost its economy through a mix of spending, subsidies, looser credit policies and tax cuts. The package was seen as a benefit to multinational companies such as General Electric Co. and Caterpillar Inc.
Also boosting US markets, the government on Monday provided new financial assistance to troubled insurance giant American International Group Inc., including pouring US$40 billion into the company in return for partial ownership. The action was announced jointly by the Federal Reserve and the Treasury Department.
All told, the moves, on top of the bailout of AIG announced in Sept, boost aid to the company to around US$150 billion. The insurer also announced a US$24.47 billion loss for the third quarter.
The Dow Jones industrial average rose 169.57, or 1.90 per cent, to 9,113.38.
Broader indexes also surged. The Standard & Poor's 500 index jumped 16.03, or 1.72 per cent, to 947.02; and the Nasdaq composite index rose 19.55, or 1.19 per cent, to 1,666.95. -- AP
