How big a day was it yesterday on Wall Street? Just the hint of a thawing in the debt-limit standoff sent stocks soaring. The Dow Jones industrial average climbed 323 points, its highest single-day point gain since December 2011. The S&P 500 gained 2.2 percent, enough to reclaim all the losses it has posted since the government shut down on October 1.
The rally was also remarkably broad-based. All 30 of the stocks in the Dow average showed gains, and all ten of the sectors that make up the S&P 500 also increased.
At the same time, the VIX index, the market's measure of upcoming volatility, spiked downward in its biggest one-day drop since April. That would indicate that traders think the long-term fears over the possibility of default have turned lower permanently.
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