The Fed Chairman Puts Down a Concrete Floor for the Market

SAN FRANCISCO -- Stealing it back from The Grinch, Alan Greenspan just saved Christmas. By acknowledging the risks inherent in a slowing U.S. economy, the Federal Reserve chairman sought to assure that consumers will keep their wallets open. What transpires at the mall this month remains to be seen, but investors on Wall Street were more than ready and willing to accommodate the chairman -- at least for one day.

The Dow Jones Industrial Average jumped 3.2% today, while the S&P 500 gained 3.9%. Even more impressive, the Nasdaq Composite Index soared 274.05 points, or 10.5%, its biggest-ever point and percentage gain.

In New York Stock Exchange trading, advancers bested decliners by a 5-to-2 ratio and new 52-week highs beat new lows 167 to 89. In over-the-counter activity, gainers led by nearly 7 to 3, although new lows outpaced highs by 235 to 65. Trading volume of 1.4 billion shares on the Big Board and 2.4 billion in Nasdaq activity further evinced the session's power. ...