Dow gains 113Associated Press
NEW YORK - Buyers returned to the stock market today, lifting the Nasdaq composite index to its first gain since May 16 as they sought bargains among blue-chip technology names.
Volume was robust, ending a two-week long drought. Buyers stepped in on the sense that many well-established stocks have fallen far enough, analysts said. But the interest-rate worries that drove investors to the sidelines are still in place, leaving today's recovery vulnerable.
The Nasdaq composite rose 106.06 points, or 3.35 percent, to close at 3,270.61. Earlier in the day, the Nasdaq had been down as much as 121 points.
The Dow Jones industrial average also bounced back from early declines and finished up 113.08, or 1.1 percent, at 10,535.35. The Standard & Poor's 500 rose 25.19, or 1.8 percent, to 1,399.05.
Decliners barely beat advancers on the New York Stock Exchange, with 1,485 down, 1,410 up and 501 unchanged. NYSE volume totaled 1.14 billion shares vs. 868.63 million yesterday. The NYSE composite index rose 4.90 to 635.18; the American Stock Exchange composite index fell 1.41 to 887.898; and the Russell 2000 gained 2.73 to 461.74.
Analysts said investors bought stocks because they believed a five-day decline that knocked 15 percent off the Nasdaq's value left many stocks at bargain prices.
The Treasury's 30-year bond fell 14/32, or $4.38 per $1,000 face amount; its yield rose 4 basis points to 6.20 percent. The 10-year note fell 7/32 point, pushing its yield up 3 basis points to 6.46 percent.