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Dow soars 165
Associated PressNEW YORK -- Renewed enthusiasm for technology issues propelled the stock market higher today, helping investors overlook the latest sign that the economy is growing too fast for the Federal Reserve. The Dow Jones industrial average rose 165.37, or 1.6 percent, to close at 10,577.86 and the Nasdaq composite index gained 96.58, or 2.6 percent, to close at 3,816.82. Despite the solid rally, both the Dow and the Nasdaq finished the week with losses of 156 and 44 points, respectively.
The Standard & Poor's 500 rose 23.06 points to close at 1,432.63. Advancers beat decliners by a 4-to-3 margin on the New York Stock Exchange, with 1,665 up, 1,239 down and 489 unchanged. NYSE volume was 803.41 million shares vs. 915.27 million yesterday. The NYSE composite index gained 6.86 to 638.33. The American Stock Exchange composite index rose 7.64 to 928.69; and the Russell 2000 index climbed 10.93 to 512.84. The 10-year Treasury bond fell 5/8, or $6.25 per $1,000 value; its yield climbed 9 points to 6.51 percent. The 30-year bond fell 15/32 point, or $4.69 per $1,000 in face amount; its yield rose 4 points to 6.19 percent.
Today's stock rally surprised analysts who expected the market to fall in the wake of an exceptionally strong employment report, which raised expectations of a big increase in interest rates later this month.
Investors, however, seemed to brush off concerns about higher rates and continued to buy stocks. Tech stocks were mostly higher, as investors poured money into the sector, believing that rapid growth will equip those companies to best handle rate increases.