Nasdaq logs
biggest point-gain
ever; Dow up 50NEW YORK -- Technology and media shares led the Nasdaq composite to its biggest point gain ever and the Dow Jones industrials to a closing high as investors celebrated the $166 billion planned merger of America Online and Time Warner. The Nasdaq composite index rose 167.05 to 4,049.67, the largest one-day point gain in history. The technology-dominated index has risen more than 300 points in the past two sessions, wiping out most remnants of a three-day slump that knocked 400 points off the Nasdaq last week.
The Dow rose 49.64 to 11,572.20, topping Friday's record close of 11,522.56.
Broader market indicators were also higher.
The Standard & Poor's 500 rose 16.13 to 1,457.60 .
Advancing issues outnumbered decliners by a 4-to-3 margin on the New York Stock Exchange, with 1,775 up, 1,344 down and 427 unchanged. On the Nasdaq Stock Market, eight stocks rose for every five that fell.
NYSE volume totaled 1.039 billion shares vs. 1.22 billion Friday.
The NYSE composite rose 4.33 to 646.74; the America Exchange composite gained 18.99 to 882.75; and the Russell 2000 index of smaller companies rose 13.58 to 501.89.
The benchmark 30-year Treasury bond fell 1/2 point, or $5 per $1,000 face amount; its yield rose 5 basis points to 6.59 percent. Two-year yields rose 6 basis points to 6.36 percent.
Technology stocks posted eye-popping gains in a wide range of sectors. Internet service providers, biotechnology companies and businesses that build computer networks all soared in active trading on the Nasdaq.
But the biggest story on Wall Street was AOL, whose bold move to acquire Time Warner spurred a wave of speculation about additional mergers between new-line and old-line information providers.