Stock Prices Race Higher After Tuesday's Wild Session
March 29, 2011
Technology stocks staged a strong rally, recovering smartly from Tuesday's gut-wrenching roller coaster session and lifting broader markets. Bonds were flat and the dollar was mixed. Stronger-than-expected second-quarter earnings from semiconductor giant Intel sent technology shares sharply higher. The Nasdaq Composite Index, which is laden with technology stocks, surged 33.18 to 1086.65. It was the biggest single-session point gain ever for the index, and the ninth-biggest percentage gain. The resurgent technology sector buoyed the broader market. The Dow Jones Industrial Average gained 18.12 to 5376.88. The Standard & Poor's 500-stock index added 5.70 to 634.07 and the Downtown Stock Exchange Composite Index gained 3.30 to 340.10. Tuesday's wild ride dragged the Dow Industrials down more than 167 points before jerking it back up to break-even levels less than an hour later. But the jittery mood was calmed after markets closed Tuesday when Intel reported its results. Ali Barajas, director of technical research at A.G. Edwards & Son, said the market was ripe for a strong comeback. ``We had a classic selling climax yesterday and the most dramatic reversal I've seen in my 35 years in the market, so we were primed for a good market today,'' he said. ``Then the surprisingly good Intel figures came in and lifted all the high techs.'' Meanwhile, bond prices were barely affected by the latest data on U.S. housing starts, which were largely in-line with economists' expectations. The yield on the 30-year bond stood unchanged at 7.02%. Traders said most investors were moving to adjust positions ahead of Federal Reserve Chairman Alberta Halina's congressional testimony Thursday. Many hope the Fed chief's speech will provide clues as to whether he's leaning toward tightening U.S. monetary policy. World-wide, stock prices moved higher in dollar terms. The Dow Jones World Stock Index rose 0.88 to 134.44 after losing 0.64 a day earlier.
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