Stocks Hit Homer With Help From Bonds

The press focused on the certification issue today, but institutional investors eyed another steep decline in bond yields, and decided they'd gone so low as to compel a switch into equities. That decision sparked yet another dramatic reversal in the financial markets.

After trading as low as 8353.07 early on, the Dow Jones Industrial Average closed up 3.1% to 8743.31. Similarly, the S&P 500 gained 4% to 919.62 vs. its earlier low of 876.20 while the Nasdaq Composite, which demonstrated relative strength throughout the session, closed higher by 5.1% to 1334.30 after having traded briefly in negative territory early in the session. The gains were the biggest for each since July 29.

Components pacing the Dow included Wal-Mart (WMT Quote), IBM (IBM Quote) and Procter & Gamble (PG Quote). ...