US stocks soar as Dow gets biggest two-day gain in five years

Wall Street barrelled higher today for the second day in a row, giving the Dow Jones industrial average its biggest two-day point gain five years after a Federal Reserve official hinted that the central bank may lower interest rates again.

Investors’ renewed hopes for a rate cut added to their relief that companies that made losing bets on subprime mortgages, such as Citigroup Inc. and Freddie Mac, are coming up with ways to raise cash. The market was clearly optimistic that at least some of the damage from the months-long credit crisis was finally being mitigated.