News In Brief

Bargain hunters drive stocks higher

Paddy Hirsch Aug 11, 2011

Warren Buffett may not have led the charge, but he was in the thick of the crowd of investors taking advantage of low share prices today.

“The lower things go, the more I buy. We are in the business of buying,” he told CNN Money’s Termsheet today. He’s not the only one. The S&P 500 powered up more than 4 percent in afternoon trading, as investors piled into the market. Tech stocks were a popular buy, with Cisco Systems cranking more than 15 percent after its quarterly profit beat expectations. Bank stocks rebounded, too after a tough week.

Buffet’s interview with CNN reflected the thoughts of many economists who are convinced this week’s mayhem in the markets has little to do with the true state of the economy.

“Business has been coming back steadily, even more than the mood of the public,” he said.

We’re here to help you navigate this changed world and economy.

Our mission at Marketplace is to raise the economic intelligence of the country. It’s a tough task, but it’s never been more important.

In the past year, we’ve seen record unemployment, stimulus bills, and reddit users influencing the stock market. Marketplace helps you understand it all, will fact-based, approachable, and unbiased reporting.

Generous support from listeners and readers is what powers our nonprofit news—and your donation today will help provide this essential service. For just $5/month, you can sustain independent journalism that keeps you and thousands of others informed.