Techs Rally to Lift Dow, Nasdaq

Published: 2 May 2000 y., Tuesday
U.S. stocks rose Monday, led by software, biotechnology, and retail shares, as investors bet that earnings at companies in both the "new economy" and some traditional sectors will continue to grow even if interest rates are jacked up. Economists expect the Federal Reserve to boost interest rates by at least a quarter of a percentage point and by as much as half a percentage point at its May 16 meeting following the release of a series of economic reports showing that inflation may be accelerating. The technology-dominated Nasdaq market also got a boost from Microsoft (MSFT), which rose 3-11/16 to 73-7/16, on indications that Friday's news of the U.S. government's bid to break up the software giant was already discounted by investors. Microsoft is one of the top weighted stocks in the Nasdaq composite index. The Nasdaq Composite Index climbed 97.44 points, or 2.52 percent, to 3,958.10. The Nasdaq's strength came mainly from its software, biotechnology, and computer networking names. "Technology stocks rallied in the face of unfriendly economic numbers last week so there seems to be some momentum continuing here," said Bill Meehan, chief market analyst at Cantor Fitzgerald. "It seems like the Microsoft news on Friday removed some of the uncertainty."
Šaltinis: Wired News
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