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NEW YORK -- Investors optimistic that the U.S. economy is growing at a healthy but noninflationary pace sent stocks broadly higher today. The Dow Jones industrial average and Nasdaq composite index both rose more than 100 points. Dow regains 112;
Nasdaq up 102.5Associated Press
The Dow rose 112.09, or 1 percent, to 11,215.10, erasing yesterday's 112-point drop. The average was up nearly 200 points during afternoon trading today, but those gains were lost after a late burst of profit-taking.
Broader stock indicators also gained. The Nasdaq composite index climbed 102.54, or 2.5 percent, at 4,206.35, and the Standard & Poor's 500 index was up 15.09, or 1 percent, at 1,517.68. Advancers beat decliners by a 3-to-2 margin with up, down 1,716 up, 1,149 down and 502 unchanged on the New York Stock Exchange, where volume was 1.066 billion shares, up from 817.33 million yesterday.
The NYSE composite index rose 4.07 to 674.53; the American Stock Exchange composite gained 9.26 to 943.48; and the Russell 2000 index rose 5.56 to 537.89.
The 10-year Treasury note's price rose 17/32 point as its yield fell to 5.73 percent, down 7 basis points from yesterday. The five-year note yield dropped 9 basis points to 5.97 percent. The 30-year bond rose 31/32 point, or $9.69 per $1,000 in face value, as its yield fell 6 basis points to 5.67 percent from yesterday.
Some analysts expressed surprise at today's stock market surge, but said it was a sign of confidence in the market. Late August, especially the days leading up to the Labor Day weekend, are traditionally a slow time for Wall Street.
"It's just optimism that we're looking at a higher market in the fall and driven by the idea that the Fed is likely to not increase interest rates," said Richard Cripps, chief market strategist for Legg Mason of Baltimore.