As the nation marked the one-month point after the Sept. 11 attacks, the start of military action in Afghanistan removed some of the political uncertainty around the stock markets. Investors were encouraged by the prospects for a giant economic stimulus package. Bargain-hunting helped stocks move back near pre-Sept. 11 levels as investors bid up some of the worst underperformers of previous weeks, including agency and media stocks. Thirty-five AdMarket stocks were up, 14 down and one unchanged for the week.
The rally may be short-lived. Market strategists have pointed out some of the buying came from investors who were forced to cover short positions-stocks they borrowed betting on further drops-which would help explain the popularity of underperformers such as Digitas, Cordiant Communications Group and Revlon.