Stocks shoot higher as volatility continues

? Wall Street turned in another stunning finish Thursday and extended its unprecedented streak of volatility – this time, to the upside – as investors spent a fractious session again struggling with fears about a recession but giving in to a last-hour wave of buying. The Dow Jones industrials ended up 400 points, after falling 380 early in the session.

It is clear that investors are reacting in the extreme to any negative economic news, including disappointing numbers Thursday on industrial production that sent stocks skidding. But traders are also responding to the market’s own dynamics, and when there was no late-session plunge, as there was on Wednesday, buyers piled in before the close.

Analysts expect this extraordinary volatility to continue, and warned that just as Monday’s huge 936-point surge in the Dow was overdone, there was little reason to trust that Thursday’s gains would hold.