Stocks Rebound After Monday Scare

The Dow leapfrogged 270 points, to 8,419.09, and the S&P and Nasdaq gained almost 4 percent, a day after the indices’ worst drops since October—and more gyrations are yet to come: Based on volatility figures, US “stock swings will be more than triple the average over the next seven months as investors contend with a global recession and the worst returns since the 1930s,” Bloomberg reports. Today’s rebound came after GE’s announcement that it will maintain its dividend and the Fed’s extension of the terms of three emergency loans. “We are in very volatile times,” Scott Richter, a money manager at Fifth Third Asset Management, told Bloomberg Television. “It could go another three to six months before we truly bottom because the recovery has been prolonged.”