World Stock Rally As Freddie & Fannie Bailout Materializes

Posted by Kris | Monday, September 08, 2008 | | 0 comments »

NEW YORK (Reuters) - Stock index futures rallied on Monday, putting Wall Street on track for a surge of 2 percent or more at the open, as the bailout of U.S. home finance giants Fannie Mae (FNM.N: Quote,ProfileResearchStock Buzz) and Freddie Mac (FRE.N: QuoteProfileResearch,Stock Buzz) stoked a global equity surge.

S&P 500 futures jumped 36.60 points and were above fair value, a formula that evaluates pricing by taking into account interest rates, dividends and time to expiration on the contract.

Dow Jones industrial average futures leapt 258 points and Nasdaq 100 surged 40.25 points.

The Hang Seng index closed up 860.99 points or 4.32 pct at 20,794.27, off a low of 20,637.99 and high of 20,840.69. It marked the index's biggest one-day gain since March 25.

I decided to hold on to my shorts. See how 1st :S